PricewaterhouseCoopers and Inland Revenue have released some advice for those seeking refunds for the significant amounts of fair dividend rate tax paid on investment gains that turned out not to be real.
Bruce Tichbon, of the RAM Investors Group, was not optimistic about the outcome for investors.
“The burden of proof still appears to be on the investor and we don’t know when further information will be available from IRD that will enable investors and their accountants to establish proof. We are advised that it is not in IRD’s interest to pay up quickly, if at all. Therefore long delays may occur.”
PWC said once investors had demonstrated that tax was paid on fictitious investments, refunds would be able to be backdated to 2009. “Refunds may also be available for the 2005 to 2008 income years applying an eight-year rule providing that the taxpayer can demonstrate that the overpaid tax results from a ‘clear mistake or simple oversight’.”
Refunds need to be processed by next March for the dates to apply.
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