Investors missing out on tax refunds

IRISH investors could be missing out on a slice of €100 million in tax refunds on their shares held in foreign companies.

Taxback.com said there is millions of euro in unclaimed tax entitlements lying idle as investors may be unaware of their right to claim back tax rebates in relation to dividend withholding tax.

The company believes thousands of people have not yet come forward to claim their money.

Seamus Murphy of the website said that already this year, companies such as Nestle, Siemens and Microsoft have paid out dividends.

He said these companies are particularly popular with Irish investors.

Other companies on the taxback.com DWT checklist include Roche, Volkswagen and Novartis while companies who have yet to pay out dividends include Johnson & Johnson and Richemont.

“Recent research suggests that only 7% of dividend withholding tax is reclaimed globally and if you translate this to those in Ireland with overseas assets in their portfolios, the loss could be upwards of €100m a year,” said Mr Murphy.

Investors who could be in line for reclaims include members of share plans where the parent company is a foreign entity, investors in shares of Irish companies that are taken over by foreign companies and high-net worth individuals who hold foreign shares.

“When income is generated across borders, the tax authority in the country of issue imposes a statutory rate of tax to the income of non-resident investors.

“This means that clients’ overseas investments are subject to significant tax which will negatively affect the overall value of their investment portfolio.

“Dividend withholding tax can be reclaimed from most countries in the world. One key advantage for the Irish economy is that the bulk of the tax rebate will be paid out by the tax authorities of other countries,” said Mr Murphy.