IRD recording of dividends

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Forums › Finance and wealth management › IRD recording of dividends

eracode

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#312200 26-Mar-2024 07:22

Part of our investments are NZ-listed ordinary shares in several different companies which are owned in our joint names.

IRD is very good at allocating our jointly-owned NZ bank Term Deposit interest income, equally between me and Mrs Code. However with the shares, all of the dividend income is recorded in her name - i.e. not allocated between us like the TD income is.

Does anyone here have jointly-owned shares and has been successful at getting IRD to split the divs between the owners? I am not sure if this is something that is achievable or maybe IRD just can't/won't do this?

I know the allocation can be sorted out in a 'wash-up' if returns are prepared at the end of the tax year - but it would be good if it could be sorted out properly as the divs are received.

Sometimes I just sit and think. Other times I just sit.

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altered-ego
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#3210935 26-Mar-2024 09:09

Interested in the answer here.

As we both are in the same tax bracket currently, it's not a biggie. With the potential drop in incoming going forward, that might make a difference in the tax.

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Eva888

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#3210951 26-Mar-2024 09:43

Was just thinking the same when I got my $2.40 already taxed dividend yesterday. We wealthy shareholders.

alikat

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#3211595 27-Mar-2024 14:39

I'm a chartered accountant and not-so-specific tax advisor. Did you know you can go into MyIR and change the ownership percentage of interest and dividend income?

Click into the income type, view detail and then manage income ownership. It doesn't remember this, and it doesn't show up on the other taxpayers side, so you'll have to bring them in to the other taxpayer manually. But it solves the IRD reassessing your return incorrectly if they go BUT YOUVE GOT MORE AND WE CAN SEE IT.

Unfortunately, you'd have to take up the apportioning correctly with the original filer.

eracode

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#3211899 28-Mar-2024 15:56

@alikat Many thanks - was not aware of that - hadn’t delved deeply enough into MyIR.

I’ve now looked at it. Mrs Code is showing all the dividends and 50% ownership is loaded in her account. I have ‘dividends’ loaded as an income type but no div income showing and there’s no way to manually load any. Quite frustrating.

Sometimes I just sit and think. Other times I just sit.

eracode

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#3211905 28-Mar-2024 16:04

ANglEAUT:

Interested in the answer here.

As we both are in the same tax bracket currently, it's not a biggie. With the potential drop in incoming going forward, that might make a difference in the tax.

That’s true and is also the case with us. It’s just that I’m a detail freak, a bit OCD on this sort of thing - and have nothing better to do. 😀

I’m in the weirdo category of people who actually enjoy doing tax stuff.

Sometimes I just sit and think. Other times I just sit.

alikat

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#3211940 28-Mar-2024 19:01

eracode:

@alikat Many thanks - was not aware of that - hadn’t delved deeply enough into MyIR.

I’ve now looked at it. Mrs Code is showing all the dividends and 50% ownership is loaded in her account. I have ‘dividends’ loaded as an income type but no div income showing and there’s no way to manually load any. Quite frustrating.

Would you like my issue? Someone has given Heartland Bank my IRD number, so now I'm getting income and tax credits that aren't mine, but Heartland Bank won't remove my IRD number from that account despite my asking them several times in writing and on the phone.

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ANglEAUT

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#3211942 28-Mar-2024 19:24

alikat: ... but Heartland Bank won't remove my IRD number from that account despite my asking them several times in writing and on the phone.

You're an accountant! Invoice them for the time spent to clean up your tax records? That might work?

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PolicyGuy

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#3211951 28-Mar-2024 20:26

alikat:

Would you like my issue? Someone has given Heartland Bank my IRD number, so now I'm getting income and tax credits that aren't mine, but Heartland Bank won't remove my IRD number from that account despite my asking them several times in writing and on the phone.

Complain to the Banking Ombudsman here
And maybe to IRD "Heartland Bank are willfully falsifying my tax returns" here

alikat

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#3213357 2-Apr-2024 22:36

alikat:
eracode:

@alikat Many thanks - was not aware of that - hadn’t delved deeply enough into MyIR.

I’ve now looked at it. Mrs Code is showing all the dividends and 50% ownership is loaded in her account. I have ‘dividends’ loaded as an income type but no div income showing and there’s no way to manually load any. Quite frustrating.

Would you like my issue? Someone has given Heartland Bank my IRD number, so now I'm getting income and tax credits that aren't mine, but Heartland Bank won't remove my IRD number from that account despite my asking them several times in writing and on the phone.

Resolved. Kernel use Heartland Bank for their high interest on call deposits and Kernel is where I put money aside for my tax bill.

eracode

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#3224938 1-May-2024 11:27

alikat:

I'm a chartered accountant and not-so-specific tax advisor. Did you know you can go into MyIR and change the ownership percentage of interest and dividend income?

Click into the income type, view detail and then manage income ownership. It doesn't remember this, and it doesn't show up on the other taxpayers side, so you'll have to bring them in to the other taxpayer manually. But it solves the IRD reassessing your return incorrectly if they go BUT YOUVE GOT MORE AND WE CAN SEE IT.

Unfortunately, you'd have to take up the apportioning correctly with the original filer.

I followed this up with written questions to IRD. Although you can set share ownership percentage on the IR site, that doesn't mean IR will apportion dividends to joint owners - because (as you say) that depends on what they receive from the filer.

I then followed up with our share registry and found that only Mrs Code's IR number is recorded for the shares - even though they are jointly owned. That's why all the divs are going to her tax account. The registry sent me a form to record both our IR numbers. Pretty easy to do when you know what's required.

I've sent the form back to the registry and it will be interesting to see (a) whether they now send split info to IR and (b) whether IR will start splitting the income between us.

Sometimes I just sit and think. Other times I just sit.

ANglEAUT

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#3225167 1-May-2024 18:30

eracode: I followed this up with written questions to IRD. Although...

Thanks for closing the loop on this one.

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eracode

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#3225170 1-May-2024 18:35

ANglEAUT:

eracode: I followed this up with written questions to IRD. Although...

Thanks for closing the loop on this one.

I’ll report again when I see if it works in practice.

Sometimes I just sit and think. Other times I just sit.

eracode

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#3225411 2-May-2024 07:27

eracode:

ANglEAUT:

eracode: I followed this up with written questions to IRD. Although...

Thanks for closing the loop on this one.

I’ll report again when I see if it works in practice.

... which won't be until Sep/Oct when the next round of dividends is due.

Sometimes I just sit and think. Other times I just sit.

eracode

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#3228555 10-May-2024 10:16

Update: After sending our two IR numbers to the share registry (Computershare) I couldn't see that they had made the change. I queried this, asking when it would be done. They replied saying:

"Unfortunately our Investorcentre [website] can only display one IRD number. Below is a screenshot of the two IRD numbers we have recorded."

So the correct info is now recorded by them - but the shareholder/customer can't see their full and correct details online.

Not the end of the world but a bit poor really.

Sometimes I just sit and think. Other times I just sit.

concordnz

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#3228572 10-May-2024 10:45

I still think all the 'existing' Shares/dividends, will likely still be allocated to the original (single) IRD number,

and only 'new shares' purchased after the date of providing the 2nd IRD number, are likely to be split 50/50.

It could be worth purchasing some more Dividend shares this year, just to see if that's the case...

I watch with interest. : )

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