Shares sold NOT registered in time for dividend to Purchaser

[chi-chi]

Hi All, I'm a newbie on here and have an ongoing dispute with ASB Securities about the above.

ASB Securities has debited my bank account with the Gross dividend when I have only been paid the NET after tax/i.c amount by the company concerned. Their letter advises that I won't need to declare the Gross dividend in my tax return and presumably therefore also ignore any tax paid as it now belongs to the purchaser. This I can understand.

So shouldn't ASB Securities therefore only debit my account by the equivalent amount of dividend that was remitted to me (i.e the NET dividend).

Right now, they've taken/debited too much and I'm not sure that I can get it back from the IRD! I feel that I've been ripped off.

I also note that they've debited the amount WAY before the actual net dividend paid by the company. Don't you think this is theft of interest lost?

Advice appreciated PLEASE!

[shasta]

Hi All, I'm a newbie on here and have an ongoing dispute with ASB Securities about the above.

ASB Securities has debited my bank account with the Gross dividend when I have only been paid the NET after tax/i.c amount by the company concerned. Their letter advises that I won't need to declare the Gross dividend in my tax return and presumably therefore also ignore any tax paid as it now belongs to the purchaser. This I can understand.

So shouldn't ASB Securities therefore only debit my account by the equivalent amount of dividend that was remitted to me (i.e the NET dividend).

Right now, they've taken/debited too much and I'm not sure that I can get it back from the IRD! I feel that I've been ripped off.

I also note that they've debited the amount WAY before the actual net dividend paid by the company. Don't you think this is theft of interest lost?

Advice appreciated PLEASE!

Some questions...

Are you in NZ or Australia (or somewhere else?)

What exchange is the company paying the dividend on, NZX/ASX?

Franking Credits & Imputation credits mean different things to people in Oz/NZ

[chi-chi]

I'm in NZ.
And I'm a tax accountant so I understand the tax rules/implications.
The exchange rate is presumably what FBU used.

Another question - with T+3 settlement rule - who is entitled to dividends for shares traded on the record date?

Thanks

[shasta]

I'm in NZ.
And I'm a tax accountant so I understand the tax rules/implications.
The exchange rate is presumably what FBU used.

Another question - with T+3 settlement rule - who is entitled to dividends for shares traded on the record date?

Thanks

So long as your transaction is processed before the ex-dividend deadline, you should be entitled to them, thats the day you buy, not the T+3

I've done this before & had ASB Sec send a dividend statement out a few days later confirming this.

[chi-chi]

Thanks Shasta.