iPACS Withholding Tax Reclaims

The challenge

Withholding tax (“WHT”) has, for many years, been an area of portfolio taxation that gives rise to several operational tax challenges. Boards and fund managers are becoming all too aware of the drag that such taxes have on investment returns, meaning that in-house tax teams spend an increasing amount of time and resource managing and overseeing the application of these taxes to an ever-diversifying global investment portfolio.

Reliance has historically been placed on custodians to manage and identify WHT leakage. But with increasing complexity in this area of taxation, clients are looking for more efficient, and often technology-led solutions in order to tackle:

Opportunities to achieve Relief at Source being missed through lack of documentation;
Double Tax Treaty reclaims not being filed or recovered, through lack of documentation or timely follow up to tax authority queries;
Complex market and EU law based WHT reclaims not being identified.

Deloitte has developed a range of capabilities to deal with each of these areas. Using our proprietary technology and harnessing the power of our Global network of WHT specialists, we can efficiently manage the full suite of WHT issues faced by asset managers and servicers.

Explore how our other iPACS technology suite can support you

Benefits

Increase operational efficiencies

Outsourcing of WHT processes allows your team to focus on business critical tasks

Cash flow benefits

Timely filing of documentation can minimise the WHT leakage on investments, ensuring investor returns are maximised

Effective oversight

Review of WHT rates achieved vs. market expectation can maximise reclaim opportunities and ensure timely recovery

Up to date information

Deloitte solutions capture up-to-date, market-focused analysis of domestic rates, exemptions and Double Tax Treaty overlay

Features

Large scale, technology driven data analysis
Automated data cleansing and enhancements where needed
Multiple asset class coverage
Network of global specialists to provide up to date advice

How it works?

Bespoke advice and documentation

Deloitte can advise on specific WHT positions, as well as assist with completion of custodian/paying-agent documentation to secure Relief at Source/Double Tax Treaty reclaims

Benchmarking analysis

Deloitte can provide withholding benchmarking analysis based on your raw custodian dividend data, identifying areas to minimise and reclaim WHT

Real time technical updates

Supported by our global tax specialists, Deloitte will keep you updated with any changes in tax rates and Withholding Tax procedures

Reclaims

Deloitte takes care of the whole refund process from start to finish. All we require from you is the respective fund data and necessary documents from your custodian. All technical, administrative, and procedural work will be outsourced to, and overseen by, Deloitte