Dominic (@BregisMoon) on getquin

8Mon·

To my Austrian investors at Flatex:

Have you also had the experience that Flatex.at acts very strangely (not to say wrongly) when it comes to "special tax questions"?

Here are two examples to illustrate this:

for the stock dividend of $VNA (+2.37%) last year, shares with a purchase price of €16.15 were booked into my account (19 times €0.85). When selling, I would now only pay the difference. However, no withholding tax was paid on the distribution. Furthermore, I received a cash dividend for the remaining shares, where the receipt stated that the purchase price would be reduced, which did not happen.

Result: positive treatment for me (even if probably wrong)

in the spin-off of $VLTO WI (+2.25%) from$DHR (+0.77%) the Veralto shares would be booked at € 0.00 acquisition price. I therefore pay tax on the full difference when selling. However, the purchase price was lowered for me at Danaher. The closing price was apparently €64.05. Now this amount was deducted from each individual Danaher share. However, this is wrong in three ways, as I then 1. pay tax twice (on the one hand because the Veralto shares were booked in at €0, but at the same time the purchase price was reduced at DHR), 2. the purchase price would have to be reduced by at most 1/3 in proportion to the spin-off. 3. also those shares were reduced for which I did not even receive a Veralto share (because I did not have a multiple of 3 shares in my portfolio)

Unfortunately, customer support is usually overwhelmed with these questions, which means that no corrections are made 💀

8 Comments

Akardier@Akardier

8Mon

Since case one has already been dealt with, I think (no advice of any kind) there is an error in reasoning here: Your purchase price falls, but so does the Danaher price as a result of the cancellation. Your purchase price is reduced in proportion to the respective price and ratio. In return, you receive the spin-off at a price of 0, while the original share is priced minus the value of the new share. So that's right. Still annoying if you want to keep Danaher but not the new ones. You pay quite a lot.

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Show answer

Basti@DeltaV

8Mon

During the spin-off, DANAHER was booked in at €181, but VERALTO too. VERALTO is now 56% in the red :D

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TomTurboInvest@TomTurboInvest

8Mon

I'm not with Flatex, but I can at least tell you something about the $VNA dividends.
The dividend is not a classic dividend but a repayment of the contribution, therefore the dividend is tax-free, at the same time the "tax-relevant" acquisition value is reduced, so you pay the KEST of this repayment in the course of a future sale. Please note that you will see this taxable acquisition value in the KEST report, but not in your deposit acquisition price, which remains unchanged. These 2 acquisition prices are 2 pairs of shoes, similar to accumulating ETFs. There, for example, the tax acquisition price is also adjusted, but not the acquisition price that you see in the custody account.

The spin-off also seems correct to me, but I can't quite make sense of your description, especially what you mean by the fact that not all shares should be reduced by the spin-off portion? There won't be 2 DHR shares (with and without) in the future?

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Akardier@Akardier

8Mon

I clearly wrote: "Pro rata to the respective course".
That means exactly that.

Example: Share x has a price of € 100.
You need 4 shares for the subscription right for share Y.
You only have 4 shares of share X.

Y has a value of 20, which reduces the price of your shares X to 95 each.

You have to find out for yourself what or whether something is wrong with you in terms of accounting. 🫡

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Dominic@BregisMoon

8Mon

Soo. I have now had Solventum shares booked in today. This was treated as a dividend. In other words, I pay tax on the distribution as normal, but the Solventum shares were booked into my securities account at the equivalent value (price at the time of the distribution). The cost price at 3M has (fortunately) not yet been changed. As far as I know, this version also complies with Austrian tax law.

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