iPACS Withholding Tax Reclaims for US Investors

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 resources 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; and
• 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.