By Phil Barlow – 30 November 2012

The recent receivership of the Ross Asset Management Group has certainly gained a lot of media attention. It was reported the receivers of the Group, PwC, have only been able to uncover $11 million of assets in a company that was thought to have investments worth around $450 million.

For many investors the question will now be, where to from here?  Can we obtain a tax deduction?  The reality is that many may find that the investments they thought they had and returned income on, actually never existed.

We understand the IRD has indicated that some Ross Asset Management investors may be eligible for tax refunds on fictitious income that they may have returned.

Obtaining a tax refund may not however be that straight forward.  It seems that investors may only be eligible for a refund of tax paid on their investment income from prior years if they can show that the income had never been derived.  Most investors are unlikely to be granted a deduction for any capital losses suffered as a result of the receivership.

If you or any of your clients have been affected by the Ross Asset Management Group receivership we would recommend that appropriate advice be obtained before any action is taken. 

If you have any questions or would like to discuss this matter further please feel free to contact your Hayes Knight Adviser or alternatively, our Tax team:

Phil BarlowTax Director
T + 64 9 414 5444
E phil.barlow@hayesknight.co.nz

Shelley-ann BrinkleySenior Manager – Tax Consulting
T +64 9 414 5444
E shelley-ann.brinkley@hayesknight.co.nz