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Understanding your Hatch tax reports: where we get the data from
Understanding your Hatch tax reports: where we get the data from

There are a lot of things we need to take into account when providing tax numbers for you.

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Written by Support
Updated over 6 months ago

There are a lot of things we needed to take into account when providing these numbers for you, e.g. the timezone and currency differences between NZ and the US. If you or your accountant needs to understand the nitty-gritty behind the numbers, here’s everything you need:

A note on exchange rates: For tax years after 2021, we use foreign exchange rates sourced from the European Central Bank in place of those from the Reserve Bank of NZ. Otherwise the data sources and details in your reports are the same between years.


Corporate Actions

This is a spreadsheet of all corporate actions associated with holdings you owned throughout the tax year.

Action Date (NZ): Date in NZT that the corporate action occurred

Symbol: The share market ‘code’ for the company or ETF (e.g. AAPL)

Type: Type of corporate action, e.g. 'symbol change', 'spin-off', 'stock split', or 'merger'.

Quantity of Shares: The number of shares affected. Note: It will be 0 for a symbol change.

Share Price (USD): Share price in USD. This may be 0 for some actions.

Notional Value (USD): Total USD value (number of shares * share price) of the affected shares. This may be 0 for some actions.

FX Rate: An inverse of the NZD to USD rate for the corporate action date rounded to 4 decimal places. If a rate is missing from the Reserve Bank spreadsheet (e.g. on weekends), the previous day’s rate is used.

Share Price (NZD): Share Price (USD) * FX Rate

Notional Value (NZD): Notional Value (USD) * FX Rate

Action Description: Description of the action sent through from DriveWealth (they can be a bit ugly!)

Dividends

A list of dividends received during the tax year. This includes dividends you receive from the money market fund and shares. Dividends that have been taxed in the US will have two lines, one  for the gross dividend amount, and one for the US tax you've paid on the dividend. 

Date Received (NZ): Date (in NZT) the dividend was paid to your Hatch account

Symbol: The share market ‘code’ for the company or ETF (e.g. AAPL)

Type: The type of dividend

Status: 'regular', 'cancelled', or 'correction'. Every now and then a dividend needs correcting after it's been added to an account. In those cases, you'll see the original dividend with a status of 'cancelled', then the correct dividend with the status of 'correction'. Most dividends will be 'regular'.

Amount (USD): The pre-tax dividend amount. 

Withholding Tax Percentage: The amount of US withholding tax applied to a dividend. 

Withholding Tax Paid (USD): Amount of tax that was withheld by DriveWealth (or the dividend-paying company itself in the case of ADRs) to cover your US tax obligations.

Withholding Tax Claimable (USD): Up to 15% of the dividend, if the dividend was taxed. 

FX Rate: An inverse of the NZD to USD rate for the corporate action date rounded to 4 decimal places. If a rate is missing from the Reserve Bank spreadsheet (e.g. on weekends), the previous day’s rate is used.

Amount (NZD): Amount (USD) * FX Rate

Withholding Tax Paid (NZD): Withholding Tax Paid (USD) * FX Rate

Withholding Tax Claimable (NZD): Withholding Tax Claimable (USD) * FX Rate

Description:  Description of the dividend sent through from DriveWealth (these can be ugly!)


Opening/Closing Positions

These spreadsheets show all the holdings in your Hatch account as at the beginning and end of the tax year (31 March). Note that where your account is more than 1 year old, the opening position is taken as the closing position of the year previous.

Symbol: Share market ‘code’ for the company or ETF (e.g. AAPL)

Quantity: The number of shares held when the market closed

Share Price: Closing share price (USD)

Market Value: Closing market value (USD) = Quantity * Share Price

FX Rate: An inverse of the NZD to USD rate for the given date rounded to 4 decimal places. If a rate is missing from the Reserve Bank spreadsheet (e.g. on weekends), the previous day’s rate is used.

Share Price (NZD): Share Price * FX Rate

Market Value (NZD): Market Value * FX Rate

Description: Identifies the money market fund position


Trades

This spreadsheet includes all your buy and sell trades made during the tax year and all money market fund buy and sell trades. When your uninvested money is swept into the money market fund, or you get paid dividends on shares you own, or you sell shares, you'll see corresponding 'buy' trades as your money is moved into the money market fund. When you buy shares, you'll also see a sell trade as the money you use to buy shares is taken from the money market fund. Money market fund trades are aggregated over a day, so if you make multiple buys or sells in a day, there will only be one money market fund trade on the settlement date.

Note: Dividends you receive on money sitting in the money market fund won't show in the trades spreadsheet.

Date (NZ): The date in NZ that the trade was completed.

Side: Buy or sell.

Symbol: Share market ‘code’ for the company or ETF (e.g. AAPL)

Quantity: The number of shares that were traded

Price (USD): Average price of the shares bought or sold

Notional Value (USD):  (Quantity * Price) + Brokerage Fees

Brokerage Fees (USD): Brokerage fees paid for the trade

FX Rate: An inverse of the NZD to USD rate for the corporate action date rounded to 4 decimal places. If a rate is missing from the Reserve Bank spreadsheet (e.g. on weekends), the previous day’s rate is used.

Price (NZD): Price (USD) * FX Rate

Notional Value (NZD): Notional Value (USD) * FX Rate

Brokerage Fees (NZD): Brokerage Fees (USD) * FX Rate

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