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The tax risk matrix - A highly flexible tool to fit your needs | Brochure


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 A highly flexible tool for financial institutions which hold or trade assets across multiple markets, e.g. banks, brokers, custodians, asset managers and funds such as investment funds, hedge funds and pension funds.

The tax risk matrix - A highly flexible tool to fit your needsContext

No consideration of distribution can be complete without due attention to tax issues and navigating through such issues is one of the biggest challenges faced.

The tax matrix can be used to identify and manage potential tax risks in relation to the products and countries covered and can be updated periodically to keep you up to speed with changes to tax legislation and practice.

Key issues

  •  Investor information
    The tax matrix can be used to identify information that needs to be made available or reported, whether to investors or to the relevant authorities and can summarise the applicable procedures and timeframes in the countries covered
  •  A management decision tool
    The information covered enables decisions on types of target investments, investment structures and products to be proposed and marketed to clients in the relevant countries
  •  Provide tax optimisation information
    The tax matrix can be used to ensure that you benefit from any available exemptions and relief e.g. reduced rates of withholding tax and the criteria and practical steps to obtain optimal tax treatment.
    It can also be run as a tax optimisation tool to investors comparing various products in various countries
  •  A systems’ implementation tool
    The tax matrix can be constructed as a basis for implementing or updating IT systems, e.g. setting up tax reporting tools, managing tax reclaims in various jurisdictions, product management databases, etc.
  •  Contain the consequences of reorganisation
    The present financial environment and economic crisis have led many financial institutions to consider their operational efficiencies around tax. The tax matrix facilitates the ongoing management and effectiveness of operational tax compliance

Main challenges

The matrix is a customised tool, designed to fit your specific needs, providing an overview of relevant tax aspects applicable to your organisation and your clients across multiple jurisdictions. The matrix can be adapted to cover any combination of asset or investment types held by different entity types in each market.

This tool can, in practice, be used in the context of:

  • Identifying and managing tax compliance and reporting obligations:
    - In the country of investment in which the security asset or fund unit is issued (such as withholding taxes, capital gains taxes and transaction taxes)
    - In the country of registration of the investor (such as local corporate taxes and reporting and filling obligations)
  •  Identifying and managing additional obligations (such as EU Savings Directive and FATCA income versus capital treatment, etc.) and in countries of distribution of funds and structured products, taking into account the form of distribution
  •  Analysing taxation rules for investors investing in funds and other financial products and which product types are most tax efficient
  •  Comparing tax competitiveness of fund vehicles in a number of jurisdictions and identifying which type of vehicle is the most suitable for a specific country of distribution
  •  Identifying tax opportunities (use of tax treaties, potential for withholding tax reclaims, cash flow optimisation, etc.) as well as potential leakages in the countries of investment

Our services

The matrix is a customised tool, designed to fit your specific needs, providing an overview of relevant tax aspects applicable to your organisation and your clients across multiple jurisdictions. The matrix can be adapted to cover any combination of asset or investment types held by different entity types in each market.

The tax matrix can be perfectly adapted to your specific needs and provide as much or as little information as you need in relation to:

  •  Type of products to be covered (shares, bonds, fund units, structure products, etc.)
  •  Type of investors to be covered (individuals, corporate, institutions, etc.)
  •  Type of income to be covered (interest, dividends, capital gains, etc.)
  •  Countries to be covered
  •  Level of detail (from high-level overview to in-depth analysis)
  •  Type of format deliverable
  •  Frequency of follow-up services, such as regular (e.g. quarterly) updates of the tax matrix, plus alerts with respect to legislative or anticipated changes, tax hotlines, etc

How can we help?

Our dedicated team is ready to serve you by developing a tax matrix tailored to your practical needs and expectations.

Deloitte has extensive experience in managing multijurisdictional tax matrix projects, working closely together with our international network of highly skilled professionals in this area of expertise.

Our ‘single point of contact’ approach ensures smooth and efficient project management, from initial contact throughout the market by market analysis, to completion, gap analysis and recommendations. Integration and coordination with other cross-border distribution service.

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