GlobeTax - Pension Funds

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Pension Funds

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Pension funds frequently termed "look at" or "fiscally opaque" from a tax authority's perspective. This means that any tax reclaims can be made at the fund level rather than at the level of each member within the fund.

It is not enough anymore to presume that the fund's custodian is doing the job. Fund managers in many countries are required by law to report performance, and many fail to include otherwise recoverable taxes in their statements. This places responsibility on the fund manager for checking how well the job is being done. As independent experts, we can evaluate performance automatically to help pension fund managers fulfill their reporting requirements. Where there is no recovery being done, we can take that job on too. To request a free fund analysis, click here.

In addition, many pension funds are deemed to be tax exempt or can, under treaties, claim back 100% of any withheld tax. Therefore, it's important for fund managers as well as their Trustees to understand the scale and scope of how withholding tax affects their portfolio. Where many beneficial owners can recover only the difference between the statutory rate and the treaty rate, reclaiming 100% of the tax, if available, is much more significant and valuable.

From a governance and reporting perspective, as many trustees are aware of such potential exemptions, reports that show deductions will be much more visible for everyone in the management chain.