Global custodians face a myriad of intricacies and challenges when handling complex withholding tax claims for clients.
In a single platform, the Xceptor Tax Product delivers end-to-end processing capabilities in the world of Operational Withholding Tax. The product enables the full process to be automated and the documentation workflow to be optimised to ensure the correct tax is withheld. The product comprises five major components covering the main back office processes in a custody tax operation.
Built on the foundations and strengths of the core Xceptor platform, the Tax product comprises five core components.
Xceptor captures the required RAS document, pre-fills it, then dispatches the form to its required destination. Chasers are built into the document workflow to ensure the document is collected and submitted to the market in time to achieve Tax Relief-at-Source.
Reclaim forms and supporting documents are generated, distributed, monitored, chased and reconciled on a continual basis to ensure efficient recovery times. Reclaim payments are also reconciled to repatriate the cash proceeds to the client in a timely manner.
Xceptor facilitates this by examining clients and their eligibility to a reduced tax rate, validating tax documentation to calculate the rate, the amount of withholding and the availability of a tax reclaim on request.
All payments received from a market source are reconciled against all internally distributed client payments, underlying NQI payments, income adjustments and reclassifications are factored in before generating 1042-S reports and the required IRS e-file at the conclusion of the reporting year.
This enables clients to manage rules to automate the process of capturing the liable transaction, calculate the amount of withholding and report to client and the tax authority or withholding agent.
8 of the top 15 Global Custodians trust Xceptor as their one-stop platform for managing tax reclaim activities for clients.
Replace legacy and patchwork solutions with modern, robust activities.
The ability to scale existing operations and handle greater volumes and more complex transactions.
The implementation of Xceptor has made a step change in client service and has reduced risk inherent in the delivery of a tax reclaim service. The documentation module is the first of three components which will form a state of the art global tax platform for Northern Trust’s Asset Servicing business.
SVP, Global Head of Income and International Tax Group, Northern Bank
We knew Xceptor would make a difference and are really impressed by how much it has delivered. Xceptor is the perfect flexible data management solution to fit with our aim of delivering superior service using leading technologies.
CIO, US Bank
Product enhancements such as the automation of tax processes, which we will look to replicate in other markets, directly benefit our foreign institutional clients such as global custodians, sovereign wealth funds and asset managers by providing faster turnaround times and improved accuracy.
Managing Director, Global Head of Sales and Head of Asia Pacific – Securities Services