Investors who suffered losses in David Ross’ ponzi scheme may be eligible to share in a tax refund, the Inland Revenue has confirmed.
Ross is to be sentenced in the Wellington High Court this morning after pleading guilty and being convicted on eight charges relating to his company, Ross Asset Management (RAM).
RAM operated a fraudulent discretionary investment management service that ultimately swindled investors of about $115 million.
At the time of its demise last November, Ross investors thought they had more than $450 million in funds under management, but the accounts were overstated by more than $300 million.
Inland Revenue has released a letter in an attempt to assist investors with their tax returns, where they may have previously included income in relation to their RAM investments.
The head of an investor group, Bruce Tichbon, says this is a big win for investors.
“We estimate that about $15 to $20 million will be refunded by IRD. We will seek confirmation of these figures by IRD.”
IRD’s letter, posted here, outlines some scenarios where investors may be eligible for a tax refund.