Author Topic: Allergan PLC (AGN.XNYS) Delists  (Read 1852 times)

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Offline Gary M

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #15 on: 04/06/2020, 07:44:22 PM »
Gary,
I agree it is ridiculous. I trade through my SMSF so there should be no tax at all.
No response from there concerned team so I have since spoken to Saxo (an overseas operator) and they say they are investigating the situation and to wait for a week and a half for a response.
A bit disappointing really.

Offline Gary M

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #16 on: 04/06/2020, 07:51:47 PM »
Maybe its time to consider Gleneagle Securities as my broker. I think I need to resolve the current issue first.

Offline Gary Stone

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #17 on: 04/06/2020, 08:49:52 PM »
Gary,

Quote
No response from there concerned team so I have since spoken to Saxo (an overseas operator) and they say they are investigating the situation and to wait for a week and a half for a response.
A bit disappointing really.

I have sent an email to SAXO Capital Markets aswell for some assistance in this matter. No guarantees.

Regards,
Gary
On the journey

Offline Gary M

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #18 on: 05/06/2020, 07:09:38 PM »
Many thanks Gary. Will see what transpires.

Offline Graeme Reardon

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #19 on: 06/06/2020, 11:54:47 AM »
Interesting, as I do my monthly transaction review, I also see the same issue as Gary M..
Using Gary S methodology, similar outcome (344% tax rate).. 

I also 'found' a $54 'Corporate Action' in my activity log, but it doesn't show up as a dividend / corporate action anywhere on the standard reports. I too see (for the first time ever) a 'Tax Charged' line item for the $649.79 impairment.

I'll lodge a query too, and report back.

(edit: yes, it should be ABBV, not ABV in the spreadsheet)
« Last Edit: 06/06/2020, 12:01:22 PM by Graeme Reardon »

Offline Robert Rawlins

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #20 on: 06/06/2020, 03:13:44 PM »
Hi Gary M & Gary Stone.
I have also been charged the tax and my account overdrawn slightly because of it. I have contacted Saxo to explain all of the workings of this transaction as AGN was showing a nice profit as well and I would like to know how it was handled in this merger/de listing.I have received an email from Saxo stating that the merger is eligible for US IRS 302 tax and this tax has been charged to my cash account. I also have been informed that the tax charged is reclaimable and they have the documents.Saxo states that their Account Managers will reach out to me to fill in and sign the paperwork. I have also been advised to follow up with them directly.
I have been quite happy with how Saxo's trading platform works, but am not impressed with their client communication. I will be trying to make contact with my Account Manager,who ever that is on Monday and hopefully not waste too much of my time.
Bob

Offline Gary M

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #21 on: 11/06/2020, 12:08:39 PM »
After a lot of queries through Support on the Saxo platform and an email directly to Saxo I finally got the same info re US IRS 302 Tax. Now have to complete a rather complicated series of forms to apply for a refund. Pretty disappointing. Saxo must have known it was a merger and there was no dividend paid so therefore no US tax liability. Now we customers have to jump through the hoops to reclaim the money taken from our accounts. Saxo support sucks. When I was eventually contacted by one of their managers she could not even advise me or guide me through the paper work that I was required to deal with to request a refund and this is over 2 weeks from the event.
« Last Edit: 11/06/2020, 06:12:27 PM by Gary M »

Offline Gary Stone

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #22 on: 11/06/2020, 12:58:33 PM »
Gary,

One difference to how I executed this trade - it was a CFD position, which I do for some positions to spread use of capital. CFDs are obviously handled differently by SAXO for such corporate actions.

Regards,
Gary
« Last Edit: 11/06/2020, 01:40:41 PM by Gary Stone »
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Offline Gary M

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #23 on: 11/06/2020, 10:15:20 PM »
They shouldn't treated differently. I am really disappointed with Saxo customer support in that they should have alerted all there customers holding Allergan that they would have apply to have a refund of the tax that was taken due the merger. Instead they stayed silent while we had to chase them down to get an explanation and to obtain the necessary forms to apply for a refund. That's not how it should work.
I wonder about how many customers that for one reason or another have not noticed the high tax applied through the merger and have not begun the clunky refund process through Saxo.
When I spoke with one of there managers in their Sydney HQ and asked her for assistance in completing the refund forms, I was told to do my best in completing them and they would get back to me if more information was needed.
After much chasing I have been advised by Saxo the the refund could occur 2 weeks after the expiry date for the refund application which was 9th July. So the tax 0f USD2000 + was taken out of my account in early June and I have to wait until end of July for the money to be returned, 7 to 8 weeks. What a shamble.

« Last Edit: 16/06/2020, 08:21:42 PM by Gary M »

Offline Vincent Duggan-Jones

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Re: Allergan PLC (AGN.XNYS) Delists
« Reply #24 on: 22/06/2020, 09:12:03 AM »
Good morning all,

Please take note of the below response from SAXO in relation to Allergan TAX fees, as well as the attached documents in relation to these comments,

"The Tax has been withheld correctly as a result of a section 302 event under US tax regulation. Please note that it is a very specific part of the regulation
The withheld amount equals 30% which can be refunded if the client certify/document themselves within a certain timeframe (normally 60 days).
The event falls under US tax regulation as one part of the merger is US incorporated.

Please find some elaborating comments on section 302 events

On the matter of the withholding under section 302, first just to provide a brief background  ……….. US tax code section 302 is an anti-abusive regulation created to eliminate transfer of ownership to related parties by escaping taxation through capital treatment.  The regulations are applicable to events in which a corporation makes a tender offer for its own shares, mergers which include both cash and stock consideration that are taxable only to the extent of the cash received, and certain other corporate actions. 

The code in effect applies when a Corporation redeems its stock in exchange for property, whether cash or some other property. It is this receipt of property under Section 302 that is taxable and as such requires shareholders to meet 1 of 3 tests in order to avail capital treatment. If none of the 3 tests are met, the cash consideration from a merger is treated as divided income which when paid to non-U.S. person is subject to 30% NRA/FATCA withholding or reduced treaty rate withholding, if available. However, NRA/FATCA withholding is eligible for refund if the beneficial owner presents a written certification confirming either (i) a meaningful reduction in their proportionate interest in the issuer, or (ii) a complete termination of their interest has occurred.

The certification process requires the beneficial owner of the payment subject to the Section 302 tests (known as a meaningful reduction in the proportionate interest) to provide a “Tender” or a “Merger” Certificate and specify whether amounts to be received should be classified as either (i) a payment in exchange for stock, or (ii) a dividend.

Please be advised that the NRA/FATCA withholding is suffered at source and not collected by Saxo Bank as we do not act as Withholding Agent.
From an adjustment perspective, our Custodian requests that the original Sec 302 certification be presented within 60 days of payment.

Please review the attachments to this email.
They provide some basic instructions on how to calculate and complete the required information for certification"