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Round Errors on Withholding Tax amounts

Rounding is constantly incorrect for entries compared to Dividend Statements received from companies.
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  • Hi Sean,

    Thanks for letting us know about this and also for sending through the example.

    As we do not receive withholding tax information from the stock exchanges, we calculate the expected amount via a formula.

    It would appear from your example that the withholding tax on your statement is being rounded down to the nearest cent (as opposed to simply rounding to the nearest cent). For example your statement shows 37.28, however when calculated without rounding the amount is 37.28571429 and Sharesight is rounding this to 37.29.

    We can easily tweak our formula to match the correct rounding policy, however it would be helpful if you could forward (to support@sharesight.com) any other examples of differing withholding tax amounts. To ensure that we don't fix one problem and create another, we need to confirm exactly which dividends this relates to - for example, all NZX dividends or only those processed via Computershare.
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  • I’m frustrated
    This issue was reported 3 years ago, and acknowledged. Has it been resolved? Can we rely on Sharesight to accurately report dividends?

    It would be be easier for Sharesight to confirm the rounding policies of the exchanges and simply implement their policies into Sharesight.

    The usefulness of automated dividends is significantly diminished if every dividend has to be checked manually for accuracy, and some updated manually if not accurate.

    It's tax time soon, so the dividends report would be invaluable for reporting purposes if the data could be relied on to be reported accurately without manually checking every dividend.
    • This comment was removed on 2015-01-21.
      see the change log
    • Hi Glenn,

      Sharesight calculates dividends based on the company dividend announcements provided to us by the exchange. Foreign witholding tax and local witholding tax (for NZ residents) is calculated to the best of our ability using known rates and rounding policies where this information is not available via the exchange (note that tax is withheld by the company not the exchange and that this information is generally not part of the dividend announcement)

      We recommend that you always check any automatically created transactions in Sharesight before using this data for tax purposes as we cannot guarantee the accuracy of this data.

      Here's a few tips for checking your dividends:
      -Unconfirmed transactions are indicated by the lightening bolt icon, displayed on both the holding page and the taxable income report, so you can quickly see which transactions need to be checked.
      -To confirm a transaction, simply click on it and click the 'save and confirm button'
      -You can enable the corporate action alert email (under the settings tab) to receive an email alert when a new dividend is paid with a link to confirm the dividend.
      -The Xero cashbook add-on is a great way to quickly reconcile dividend payments in Sharesight with your bank statement.
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  • Thanks for the tips on manually checking the dividend data that Sharesight calculates and cannot guarantee the reliability of.

    Can you confirm please whether Sharesight has implemented the rounding policies of the exchanges that the base dividend data is sourced from ... or is the rounding policy Sharesights' and not the exchanges?

    Thankyou.
    • The withholding tax amount is calculated by the company (or on behalf of the company by the share registry that the company has chosen to employ), rather than the exchange. So in practice this means that the dividends payments are calculated via a variety of different systems and we've seen examples of amounts that appear to have used different rounding policies (eg standard rounding or rounding down).

      Sharesight rounds to the nearest cent using standard rounding and in most cases this results in a figure that matches the dividend statement, however due to the above there's still a chance that the Sharesight value could be out by 1c due to rounding in some cases.

      Ultimately we'd need to receive personalised data directly from the share registry to guarantee that we record a value that exactly matches your dividend statement, however unfortunately this is not possible at present.

      With regards to the rounding issue specifically, I imagine that it's unlikely that the tax department will chase you down for a few cents here and there, but nonetheless it always best to be exact!
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