Why does the performance report display a different dividend amount to the taxable income report?

Over the same date range, the dividend amount for some of my shares differs between the Performance Report and the Taxable Income Report, what's going on?
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  • The taxable income report matches dividends based on their paid date whereas the performance report matches dividends based on the ex-date.

    For tax reporting purposes a dividend is generally accessible income on the date that it was paid or credited to you.

    For performance reporting purposes the ex-date is the more appropriate date to use because if you hold shares prior to market open on the ex-date then you are guaranteed to receive the dividend. When the shares go ex the share price usually moves down to reflect that fact. Reporting the dividend in the Performance Report based on the ex date goes to off-set any downward movement in the share price, so you avoid the dip in reported returns that would happen if the dividend was reported on the paid date.

    If the dividend amount is different between your performance report and your taxable income report, it is likely that this is due to the different dividend dates that are being matched by these reports.

    Note: this applies to dividend payments. For Australian customers, any income that is marked as a trust distribution (eg managed fund distributions) will use the ex-date for tax reporting purposes.
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  • Not necessarly, just because dividend was paid in the current financial year means it was taxable in the same year. Sometimes it can possibly be taxed in the previous financial year.
    • Hi Brian,

      Thanks for your post.

      The ATO advice on this is as follows:
      "A dividend is assessable income in the year it was paid or credited to you. Your dividend statement should have the relevant date (often referred to as the payment date or date paid)." (via: http://www.ato.gov.au/individuals/Pri...)

      If there are special circumstances that mean that a dividend should be declared in a previous financial year, you will need to adjust for this before completing your tax return.

      Please note that the Sharesight tax reports are intended as a tool to help you complete your tax return. Sharesight is not intended as a replacement for tax advice or the help of a tax adviser to complete a return.
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  • Re Rosie and Brett Gould Portfolio
    Overseas Taxable Income Report from 1/4/11-31/3/12 has different amount for Toll dividends than the sold securities report for the same period?

    This reply was created from a merged topic originally titled
    Dividend query.
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  • Personally, I don't like dividends being recorded in this fashion. I would prefer if the performance only displayed the dividends from the pay date. I understand the reasoning i.e. accommodating the dip in share price following the ex-div date but it simply isn't factual. My current performance charts show income that I haven't received. The dollar sign indicating income is totally misleading (maybe put an 'Ex' symbol if people are really that worried about justifying a drop in the share price?)

    I'm a simple man. I'm not an accountant. In my opinion, I haven't received money until it is my hand! I appreciate that I may be in the minority on this but is there a way to customise/configure the performance data to show dividends only from the paid date?
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