GlobeTax’s ESP platform facilitates the secure and efficient transfer of beneficial owner information throughout the custody chain, streamlining cross-border tax relief and recovery processes.
Through our ESP submission portal, Issuers, Transfer Agents and Depositaries can centrally manage divergent market rules, rates, processes, payments, and audits. In the U.S. market, DTC Participants enjoy the system’s document generation functionality, the ability to submit claims in bulk, and the confidence that omnibus and segregated account holder clients are withheld at the appropriate tax rate.
Depositary Banks offer Depositary Receipt holders the opportunity to recover over-withheld taxes on foreign investment income. Coordinating receipt of data and documentation to support international tax recovery can be complicated, requiring both expertise in filing requirements and technology to standardize incoming information.
GlobeTax’s ESP platform helps Depositaries avoid the risk and expense involved in tax processing. GlobeTax manages every step of the recovery process, from developing Important Notices to validating incoming information to allocating funds across omnibus and segregated accounts.
For DTC Participants
Because every market maintains unique rules, requirements, and processes, many investors fail to capture all entitlements from cross-border tax relief and recovery.
ESP is designed to help Participants maximize client portfolio performance by centralizing and streamlining the claim submission process. With a single file, Participants can submit reclaims across multiple accounts, events, and procedure types for up to 50,000 beneficial owners at a time.
For those Participants seeking additional support, GlobeTax’s MIDAS™ service manages entitlement identification and documentation submission, fully removing the burden of tax recovery from the financial institution.
For Transfer Agents
Working on behalf of issuers, transfer agents are responsible for identifying and tracking registered shareholders and beneficial owners to ensure tax is withheld at appropriate rates. Collecting and verifying this information from shareholders while managing the ever-changing rules and requirements is a time- consuming and expensive task.
Through our ESP offering, GlobeTax manages this responsibility entirely. GlobeTax securely collects shareholder information and documentation, managing the entire end-to-end claim filing process on behalf of shareholders.
By ensuring shareholders receive the maximum return on investment through cross-border tax relief or recovery, issuers can retain existing shareholders and generate new interest in their shares. Understanding entitlement opportunities and establishing recovery process is time-consuming and administratively burdensome.
Through ESP, GlobeTax liaises with the withholding agent, relevant tax authorities and local market intermediaries to establish relief / recovery processes that are organized, efficient, and — most importantly — require minimal effort or expense from the issuer.