GlobeTax Launches Withholding Tax Service Bureau on SWIFT Network
GlobeTax today launched "TaxReclaim," a SWIFT Service Bureau, to automate tax reclaims and relief.
New York, NY (PRWEB via PR Web
Direct) May 23, 2005 -- GlobeTax, the world’s largest provider of
withholding tax services, today launched "TaxReclaim" - a SWIFT Service Bureau
to automate tax reclaims and relief at source applications for custodians, asset
managers and brokers. The Service Bureau allows these financial intermediaries
(FIs) to provide a comprehensive withholding tax service for the benefit of
their clients while alleviating much of the overhead expense of this back office
activity.
"For several years, many custodians and fund managers have
embarked on a strategy to leverage efficiencies and cost savings by implementing
Straight Through Processing (STP). SWIFT has been a pivotal force and platform
for institutions to achieve this due to our dual role as guardians of industry
message standards (e.g. ISO15022) and providers of network infrastructures,
including FIN & SWIFTNet. However, many of the functions occurring in back
office environments are still manually processed. Until the financial services
community finds a way to automate these processes, the full benefits of STP
cannot be enjoyed. To the extent that it helps the industry move towards STP in
corporate actions, we welcome service bureaux such as GlobeTax on board," says
Bob Davies, Regional Director Securities, SWIFT Pan Americas.
"At present
there are some expensive software tools in the market that allow FIs to
calculate the value of tax reclaims and some even print forms, the usual
alternative being spreadsheets. After that, the process is predominantly manual
with forms having to be posted back and forth to beneficial owners, local tax
authorities, foreign agent banks and ultimately foreign tax authorities," says
Len Lipton VP of Marketing for GlobeTax. "Pre-sales modelling shows that using
this service bureau could save up to 65% of withholding tax processing costs and
make the process effectively STP from the subscriber's perspective – electronic
data files out, receivables posting, electronic reports and reclaim entitlements
in, all by SWIFT."
The Service is available to over 7,650 SWIFT user
institutions and the first users are expected to be operational with the service
by September. The beneficial owner and income data needed for tax processing is
sent from the subscriber's primary BIC to a dedicated additional destination BIC
managed securely on the subscriber's behalf by the Service Bureau. Once
received, the Service Bureau quality checks the data, calculates the reclaim,
completes the correct forms, appends the additional required documents, files
and follows up on the reclaims. Reporting via FileAct keeps the FI up to date
with its compliance and fiduciary duties and the subscriber finally receives tax
reclaim funds automatically to allow the credit of its client
accounts.
"GlobeTax's processing volumes, over a million reclaims a year,
will also benefit Service Bureau users," observes Martin S. Foont, President
& CEO of GlobeTax. "Our expertise and relationships with all tax authorities
often allows us to get client money back faster than market standards. In
addition, some investors are entitled to apply to foreign governments to be
taxed correctly at source (relief at source). This application process can be as
arduous as processing remedial tax reclaims but the Service Bureau will process
these local applications free of charge," Foont comments.
Contact:
Len
Lipton, VP Marketing
e-mail protected from spam bots
90 Broad Street, New
York NY 10004
United States of America
(212) 747 9100
Ross McGill,
Director of Marketing
e-mail protected from spam bots
78 Cannon Street,
London EC4N 6NQ
England
+44 (0)20 7618 6692
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Source : http://www.prweb.com/releases/2005/5/prweb243006.htm