services
Withholding tax reclaim
Reclaiming withholding tax can be a daunting, bureaucratic process, especially considering that not all banks and asset managers provide this service. Fortunately, The Reclaim Company offers a solution. With over 20 years of experience, we leverage our expertise to recover the withholding tax paid by you. Curious about how much withholding tax you can recover? Let us help you find out. Do the Reclaim Quickscan.
Second Opinion
Your custodian provides the taxreclaim service, enabling you to recover excess withholding tax deducted. Ideally, this is achieved through relief at source, meaning the withholding tax is reduced before the dividend payment. If this isn't the case, your custodian will perform the withholding tax reclaim for you as agreed.
We offer a second opinion on your portfolio to ensure your custodian fulfills its obligations. Our thorough analysis checks the accuracy and completeness of your portfolio. If any withholding tax amounts still need settling, we're ready to manage the settlement process.
Furthermore, our second opinion analysis informs your 'in control statement' regarding outsourcing recovery activities to your custodian, ensuring you remain informed and empowered in managing your investments.
Relief at source
When entrusting your investments to a custodian, a range of money and securities accounts are typically opened to facilitate management. This process involves the custodian also establishing accounts with (I)CSDs or sub-custodians.
Given our deep understanding of post-trade settlement and custody procedures, coupled with our expertise in recoverable withholding taxes, we offer valuable guidance on optimizing account opening with your custodian and associated (I)CSDs/sub-custodians.
For investors with holdings spanning multiple countries, setting up multiple money and securities accounts is essential. However, with the right account structure, additional costs can be minimized. Complex tax structures often complicate this aspect, but our insights can help navigate such challenges effectively.
Qualified Intermediary U.S. & FATCA.
In today's regulatory landscape, obtaining Qualified Intermediary (Q.I.) status as an intermediary is almost a necessity, largely enforced by the I.R.S. While the process of obtaining Q.I. status may seem straightforward—it's essentially an agreement with the I.R.S.—the implications can be significant for organizations, especially with the addition of FATCA regulations in 2010.
Previously, there may have been some leeway with the I.R.S. regarding ambiguities, but recent years have seen stricter supervision and enforcement. Achieving and maintaining Q.I. status entails considerable effort and cost, posing a challenge for many parties. The key lies in correctly implementing and, when necessary, adjusting associated agreements concerning identification, withholding, and reporting.
As a Q.I., mitigating the risk of additional costs such as fines or extra audits is paramount. This can be achieved by ensuring the entire process—from client identification to reporting to the I.R.S.—is meticulously set up and adhered to. By doing so, organizations can avoid unnecessary expenses and preserve valuable employee time.
Memorandum for Secretary Mnuchin
The "Memorandum for Secretary Mnuchin" dated October 14, 2020, from the Department of the Treasury (US), highlights various aspects of international tax compliance.
Notably, TIGTA's report revealed that the IRS processes failed to identify 1,919 withholding agents with reporting discrepancies, amounting to over $182.7 million. Additionally, our review uncovered 366 withholding agents who claimed tax credits totaling $506 million more than what was reported on the Forms 1042-S.
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