Owen has recently purchased shares in a big Bank but has not yet advised his bank details and so on the 29th June 2020 he received a cheque representing a dividend. Owen did not bank this cheque until 3 July 2020. He does not know when he received the cheque as he collected his mail on the 28^th June 2020 but did not open it until the 29^th June. Owen kept a copy of the dividend statement which indicated that the dividend was paid by the company on the 18^th of June 2020. What is the correct date that Owen 'derived' this dividend?

Question

Quizplus · Accepted Answer

For tax purposes, dividends are typically considered derived on the date they are paid by the company, which in this case is the 18th of June 2020.

Owen Has Recently Purchased Shares in a Big Bank but Has