Forum Archive Index - December 2002

["Shares" <shares@whoami.com>]

It is a form of (part) recompense to foreign holders of the NZ company tax
paid by on Telecom's (and other companies') profits and included as an
imputation credit for NZ tax payers.  Foreigners can't use NZ imputation
credits.  The money is not from Telecom's (or other companies') coffers, but
is allowed as a full tax credit for Telecom (or other) by the IRD.  It has
no cost to either Telecom or the other shareholders.  NZ taxpayer holders of
Telecon get a dividend of 7.5 cps (5.0cps + imp.tax credit of 2.5cps), while
foreign holders get 5.8824cps.  Ask yourself who's better off.
----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Sunday, December 15, 2002 7:49 AM
Subject: [sharechat] Supplementary payments for non-NZ holders


> Hi All,
>
> Usually with a New Zealand company dividend announcement there is a
> 'supplementary payment' announced for non New Zealand domiciled
> shareholders.  Are there any such people on this forum?
>
> Take the most recent dividend announcement from Telecom as an
> example:
>
> http://www.telecom.co.nz/print/0,3903,200694-200141,00.html
>
> The dividend is 5c.
>
> The supplementary dividend for non residents is 0.8824c making a
> total of 5.8824c.
>
> So my questions are these:.
>
> 1/ How would a non-NZ domiciled investor treat this in their tax
> return.  Just a gross payment of 5.8824c?  Is it that simple?
>
> 2/ How does Telecom treat such a payment in their own accounts?
>
> 3/ Why are NZ companies so intent on giving higher payouts to
> overseas investors, at the expense of the hapless home market
> investor?
>
> TIA
>
> SNOOPY
>
>
>
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."
>
>
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/
>
>


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/