Investors Failed To Reclaim Billions In Tax Refunds In 2003

by Phillip Morton, Investors Offshore.com

03 February 2004

Fund managers failed to reclaim over $6 billion taken in withholding taxes on overseas dividend payouts and interest earnings last year, recently published data has revealed.

The figures, compiled by software specialists GOAL, indicate that $6.6 billion in total was left unclaimed by money managers globally in the ten months to the end of November 2003, up from a total of $6 billion a year earlier.

The research shows that American-based investors left the largest chunk of money unclaimed at $1 billion, an increase of 23% from the previous year. Meanwhile, UK investors forwent $784 million, up 14% from a year earlier.

Stephen Everard, GOAL's managing director, reasoned that much of the problem can be attributed to “renewed enthusiasm for dividend payments” although he also blamed fund managers for failing to instruct custodians to reclaim the money.

"Governments are sitting on money that rightfully belongs to investors," added Everard, according to the Financial Times.

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