Ross refund timeframe extended

Investors who lost money to David Ross will be able to claim back eight years' of tax paid on fictitious returns, the IRD has said.

Tuesday, March 18th 2014, 11:21AM

Ross was last year sentenced to more than 10 years’ jail for operating a scheme that took at least $115 million from investors.

It had been suggested that tax payments made by those investors from 2008 on could be reassessed because they were paying tax on  investments that did not exist.

That prompted the head of the group that represents Ross investors to estimate that the refund could be worth $15 million to $20 million.

It will likely be much more than that now the IRD has ruled investors' tax returns for the past eight years can be reassessed.

The IRD wrote to Ross liquidator PricewaterhouseCooper saying that investors had made a “clear mistake or simple oversight” calculating RAM income, as required by the Income Tax Act.

"Accordingly, it has been concluded that the four-year timeframe during which the Commissioner is able to refund overpaid tax is able to be extended to eight years in the RAM context."

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