How is Your Competition Handling Foreign Tax Reclamation?
The complexity in tax recovery is compounded for banks and brokers servicing a wide range of asset classes and client types. Maintaining the expertise and infrastructure necessary to file reclaims is costly, time consuming, and labor intensive, particularly for large financial institutions. We provide a full outsourcing solution to these firms.
Our services are tailored to meet the specific needs of bank and broker clients: investors of varying tax status, portfolio composition, and country of residence. GlobeTax provides solutions that integrate seamlessly with our clients’ in-house systems including co-branded or white label options and proprietary services like EDS Assist®.
Private banks tend to work with a variety of legal entity structures (e.g. trusts, foundations, partnerships, etc.). Due to the range of requirements for these legal entities to file for tax reclamation, the process is far more complicated to manage effectively. GlobeTax works with private banks to maximize entitlement recoveries while minimizing the amount of work required from the bank or its clients.
Banks acting as nominees facilitate custody services or shield ownership information from counterparties. However, in applying for withholding tax relief or recovery the nominee must be able to prove who the ultimate beneficial owner is and why they are due favorable tax treatment. GlobeTax works with nominees to streamline the process of reclaiming over-withheld taxes by helping to demonstrate to tax authorities the flow of funds to the ultimate beneficial owner and fulfilling documentation requirements on an ongoing basis.
Trust banks tend to work with a variety of legal entity structures (e.g. charitable trusts, foundations, tax-exempts, etc.). Due to the range of requirements for these legal entities to file for tax reclamation, the process is far more complicated to manage effectively. GlobeTax works with trust banks to maximize entitlement recoveries while minimizing the amount of work required from the bank or its clients.
GlobeTax supports DTCC and its Participants in facilitating relief from or recovery of withholding tax on dividends from the U.S. listings of non-U.S. companies (including American Depositary Receipts [ADRs]).
We support DTCC Participants by offering our ESP portal for the submission of documentation to support DTCC’s Corporate Actions system CA Web. Further, GlobeTax’s proprietary service, EDS Assist® manages election for relief at source from withholding tax on income via CA Web, ensuring clients are taxed at the correct rate on pay date. In addition to ADRs, we extend this service to Canadian assets dually listed in Canada and the U.S., non-U.S. companies with a direct listing in the U.S., and Yankee bonds. Following the setup process, which designates tax residency and filing status of each account holder, EDS Assist® will monitor current securities holdings on behalf of subscribers. When DTCC announces an upcoming income event by issuing an “Important Notice”, EDS Assist® subscribers receive a single file containing all the information needed to enter allocation data through CA Web.
GlobeTax also collects, validates and submits long form claims to the respective foreign tax authority on behalf of DTCC Participants.
GlobeTax works with prime brokerage firms to make tax reclamation available to their clients as a value-added service, at no risk or direct cost to them. Our unique processing solution enables prime brokerage clients to benefit from tax recovery without violating data protection and privacy rules.
Contact us for a free estimate of your clients’ likely cash entitlements, which may include multiple years of available recoveries under statutes of limitations.