There is a possibility investors in Ross Asset Management may be eligible for tax return refunds.
Investors in the Wellington-based investment company have raised concerns over tax paid to the Inland Revenue Department on what could turn out to be fictitious returns.
PwC receiver John Fisk is expecting to file a court application to have the company liquidated, which means investors who have enjoyed ‘inflated returns’ may be targeted.
Inland Revenue could face claims for millions in tax refunds if clients of Ross Asset Management can satisfy it that their “income” never existed.
Investors now face the prospect of recovering less than 3 cents in every dollar they thought they had with Ross.
But according to expert claims, those who drew a regular income from their investments – which was taxed – may get a refund if they can satisfy the IRD that they were in fact simply getting their original deposits back.
Ross Asset Management receivers confirm investors’ fears, say they don’t expect to find any more assets of significant value after talking to David Ross
Palmerston North, New Zealand; Tel 06 357 1901
Mobile 027 437 9050, e-mail: bruce.tichbon@gmail.com
23 November 2012: For immediate release.
MEDIA RELEASE – RAM Liquidation Must Work for Investors
The Ross Asset Management Investors Group is deeply concerned that it is now confirmed that there is very little money left in RAM (Ross Asset Management in receivership) for distribution to investors. Most of the investors were ordinary New Zealanders of limited means, and many have been left destitute by the failure of the company.
Receivers do not expect to uncover more money after meeting with the founder of collapsed Ross Asset Management.
John Fisk and David Bridgman of PricewaterhouseCoopers have found only $11 million when the company reported $449.6 million was in investors’ portfolios as at September 30, 2012.
PWC met with founder David Ross after he was released from hospital on Thursday in a bid to find more funds but have now confirmed the grim situation investors face.
The receivers of Ross Asset Management say they don’t expect to locate any further assets of significant value above the miniscule amount already found, after speaking to principal David Ross, who was released from hospital this week having received compulsory treatment under the Mental Health Act.
By Hamish Rutherford
The receivers of suspected Ponzi scheme Ross Asset Management say a meeting with the company’s sole director has left little prospect of significantly more money being found.
By Hamish Fletcher
There may be even less money available for Ross Asset Management’s bewildered investors than first thought, its receivers have warned.
Accused ponzi scheme operator David Ross was released from hospital late yesterday.
Mr Ross had been receiving compulsory treatment under the Mental Health Act in hospital for the past three weeks, according to a statement issued through law firm Chapman Tripp.
“During this time he has been unable to assist authorities,” Chapman Tripp says.
David Ross to ‘cooperate fully’ with receiver, SFO & FMA probes into Ross Asset Management & the funds invested with it after release from hospital