GlobeTax, a US-based provider of withholding tax services, has launched a Swift Service Bureau to automate tax reclaims and relief at source applications for custodians, asset managers and brokers.
GlobeTax says the TaxReclaim bureau will enable intermediary subscribers to provide a comprehensive withholding tax service for the benefit of their clients while alleviating much of the overhead expense of this predominantly manual and paper-based back office activity.
Len Lipton VP of marketing for GlobeTax, says: "Pre-sales modeling 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 Bureau handles the transmission of data between BIC addresses registered on the network, quality checks the data, calculates the reclaim value, handles the form filling and follows up on the reclaims. Reporting for compliance and fiduciary purposes is conducted via SwiftNet FileAct.
Lipton says first users will be operational with the service by September.