Removing the pain from tax reclaim

Removing the pain from tax reclaim

Our second article in our tax operations transformation series highlighted the merits of prioritizing tax relief at source for your customers. Of the seven modules that comprise our Tax Processing product, tax documentation management and tax relief at source are two of the three pillars that form the foundation of a modern digital tax processing function. Withholding tax reclaim is the third pillar which we introduce today. 

Recovering excess withholding on behalf of customers requires filing tax reclaims to tax authorities. Whether submitted once a year or periodically, bundled or individually, it is a process mired by excessive paperwork and a high risk of human error. 

Automated end to end

Ahead of undertaking tax reclaim, financial intermediaries, without the necessary technology, face the grueling task of manually organizing documentation and making complex calculations. As well as a considerable risk of human error, precious time is lost that could be much better spent elsewhere.

Our tax reclaim module eliminates these pains by providing end-to-end automation for the entire withholding tax reclaim processing workflow.

Starting with digital income payment and reclaim opportunity capture, the module reliably automates each step of the tax reclaim process, right down to end payment reconciliation. The real-time dashboard ad reports offer full transparency on progress and KPIs for clients and stakeholders alike.

Powered by our highly configurable data automation platform, our tax reclaim module continuously processes reclaim requests. For example, reclaim forms and supporting documents are not simply generated, distributed, and monitored but are constantly chased and reconciled to ensure shorter recovery times. Customers enjoy faster payment of cash proceeds.

Safeguard your business

Multiple institution types use our tax reclaim module: fund managers, fund administrators, custodian banks and asset servicers. The demanding operating environment they operate under enabled us to design this module with a strong focus on control, risk management, and regulatory compliance in mind. 

Wherever possible, automated data capture ensures all documentation is pre-populated in advance of being sent to customers, tax authorities and sub-custodians, with automatic chasers for completion and renewals built in. Reducing the time and effort required for tax compliance and reporting.

The transformational power of automation

The automated capture, production and management of tax reclaims have transformed the tax reclaim process from income payment to credit of reclaims.

However, our tax reclaim module does more than automate formerly manual processes. Able to configure workflows, you are empowered to take on exception management tasks for complex customer situations, such as the need to meet de minimis thresholds, and where documentation and static data are absent. We can help you manage electronic reclaim submissions, as well as paper-based ones. 

Looking ahead: in our next article, we will explore the challenges of tax rate determination and how our client-tailored module ensures accuracy on applicable tax rates based on context.  

Not seen our earlier tax articles? Discover them now: