Constellation Healthcare Share Discussion Threads

[gary1966] 24/4/2017 09:47

Parmared Off,

Have you heard of people outside of SIPP's only having 15% deducted?

Thanks

Gary

[parmared off] 23/4/2017 19:04

Gary , based on what I have been told I think IG are fobbing you off. Capita extended their deadline for receipt of W8BEN forms and others on this BB have had only 15% withheld. I am looking into this further tomorrow and will update you and this board.

[gary1966] 22/4/2017 20:20

Reply I have had from my complaint to IG is that Capita have decided to completely ignore if people have submitted the relevant forms and charge everybody 30% withholding tax. Apparently they now write US tax legislation rather than just applying it. Sadly I will now have to escalate my complaint to the relevant external authorities and will be bringing simultaneous complaints against IG as well as Capita.

[rivaldo] 04/4/2017 10:10

Correct, bought through my UK trading account.

[parmared off] 03/4/2017 16:02

Another provider - would I be right in assuming that the account you bought through was a U.K. Equities one (seeing as CHT were only listed on AIM)

[rivaldo] 03/4/2017 08:04

Parm, Barclays already had one as I do sometimes trade overseas via a separate International Trader account. Are you going into battle with Barclays or another provider?

[parmared off] 31/3/2017 22:09

Thanks for your reply Rivaldo - Had Barclays already got a W8BEN form from you because your account with them enables international trades or did they supply you with the form for the purposes of this deal. (Is your sharetrading account UK equities only?) Would greatly appreciated a reply as I am going into battle next week.

[rivaldo] 31/3/2017 15:46

Yep, I think I posted previously I was taxed at 30% and they did have my W8-BEN form.

Even better - I've been offered substantial compensation :o))

They've agreed that their performance was completely unsatisfactory. Apparently their inquiry about what happened went right to the top, and several changes are being made to their procedures.

All's well that ends well. I now await a final calculation of the capital/income split for tax purposes.

[parmared off] 28/3/2017 18:00

hi rivaldo - thats great news! can I ask if that is because you were taxed at 30%? and had you supplied Barclays with a w8ben form ?

[rivaldo] 28/3/2017 15:00

I was told yesterday by Barclays that "the 15% withholding tax will be refunded".

I wasn't provided with any calculations or figures, so await the next stage, when no doubt the calculations will be incorrect and there will be another battle!

[parmared off] 23/3/2017 12:38

Hi Gary I have just private messaged you.

[gary1966] 15/3/2017 16:39

I have been told today that I am receiving an additional $0.129 per share but tax rate is maintained at 30% To justify this I have been sent a section of the proxy statement that relates to US holders which if I know one thing it is that I am not a US holder.

Promissory notes also showing on my account.

Gary

[melody9999] 10/3/2017 00:10

Corporate action note from TD Waterhouse. Does not fill one with any confidence. Just glad I got my money out!

Constellation Healthcare Further to the recent communications regarding Constellation Healthcare we have been provided with an update from the company registrars. They have confirm that there has been a delay in issuing the Promissory Notes to entitled shareholders. A revised timetable has not been provided. When the notes are issued we will update your account accordingly.

[parmared off] 08/3/2017 17:33

Not trying to add a spanner to the works but as far as I understand people that have received additional sums in the past few days are in effect being repaid 15% withholding tax due to the late filing of their W8BEN forms. Please could someone let me know if this is the case.According to the proxy statement all those subject to withholding tax should have been taxed on the $2.17 but (and this is where I think the error occurred) the tax due should have been taken off the $1.74 and the proceeds paid out. I think Capita took the withholding tax off the $2.17 and paid out the remainder and then, realising they had in effect paid out taxed promissory notes , decided to adjust the cash payment accordingly.This all begs the question should they have been allowed to apply withholding tax to the promissory notes? If the answer to that is no then everyone that has been taxed should be due a refund of either 12.9 cents per share for 30% or 6.45 cents for 15%.Hope this is a little clearer than mud

[arthurly] 08/3/2017 16:36

Thanks Gary. What an overcomplication it all is.

[gary1966] 08/3/2017 16:31

Arthurly,

At the rate that has already been applied to your previous payouts.

Initially I have been charged 30% and I have got IG talking to their custodian who I hope are talking to Capita about reimbursing half of the withholding that they have currently deducted so that ultimately I have only paid 15% which I will try and reclaim next year.

Withholding tax will be deducted on any interest earnt from the promissory notes. If the promissory notes are redeemed then withholding tax will be deducted and then you will have to go through the whole process again I guess to recover this the following year.

Gary

[arthurly] 08/3/2017 15:57

So what rate has been deducted on the income (dividend) side, gary ? Is it 15% or 30% ? Will we have additional tax to pay on the Income part in next years Return ?

[gary1966] 08/3/2017 15:33

I have spoken to Capita this morning and they have confirmed that a payment was sent on Friday to adjust for the mis-allocation in sales proceeds. I am assured that after the payment on Friday that we are at the following position:

$1.19 paid with no deduction of withholding tax.

$1.74 less withholding tax at the relevant rate. I stress tax has only been deducted on $1.74 not $2.17.

Promissory notes to follow and no withholding tax will be charged and so hopefully this clears up that anomaly that we will only pay tax on the promissory notes if they are paid out as well as the income we receive on them in the meantime.

Hope this helps.

Gary

[parmared off] 07/3/2017 16:38

Edit - that's if you had been incorrectly charged at 30%

[parmared off] 07/3/2017 16:19

Could I ask all those that still visit this thread whether their sharedealing accounts were UK equity only and if so were you still allowed to file a W8BEN form for the purposes of this merger. News from Capita is that some people should have received or will be shortly receiving 15% tax refunds if their broker/ bank had managed to submit the aforementioned form.

[gary1966] 07/3/2017 07:34

Parmared Off,

Many thanks for all of that.

Gary

[parmared off] 06/3/2017 22:13

Ok the number I used was 267-941-1000 (from UK I think it's 00-1 first) Option 4 and then Option 1Unfortunately I can't find the name of the person that helped me but if you happen to call the number it may be an idea to see if they can help with filling out a Section 302 Certification of Treatment form.I think the procedure is that first you create your own ITIN number. Then you have to fill out a 1040NR form (which they can help you with) and then this 302 form to claim the refund. I don't think any of this can commence until the start of the next tax year.

[parmared off] 05/3/2017 21:36

Hi Gary,I will try and find the number for you tomorrow - its scribbled down somewhere - as for the additional 15% you have had withheld you should take up with IG. As far as the IRS are concerned you can only start the process of a reclaim -/ refund in the next financial year, so January 2018.

[gary1966] 04/3/2017 21:49

Parmared Off,

Could you post the international phone number of the IRS that you used to speak to the very helpful gentlemen.

IG use a custodian that is adding an extra layer of frustration for me. IG insist on having a valid W-8BEN for anyone that holds a US stock. This is great but their corporate actions department did nothing with it until I hounded them and sadly it was potentially too late. As a consequence I have been taxed at a rate of 30% withholding tax. Obviously 15% should be immediately recoverable but not sure how I go about doing this if IG refuse to sort a mess that they have heavily contributed to.

The remaining 15% could also be problematic as I don't know what proof will be required to show that all my holding was relinquished and therefore it is a capital rather than an income event.

Any help anyone can give is greatly appreciated as it has ended up being quite a bit of money that I can neither afford or see why I should miss out on.

ATB

Gary