Clearstream announces the launch of the first electronic "smart form" service for tax certification which will allow customers to streamline the inefficient paper-based processes thus reducing processing costs and forms handling times.
The new service combines an online decision tree with electronic forms (smart forms). It will make it cheaper and simpler for customers to claim relief of withholding tax at source beginning with France (equities - simplified procedure) and Spain (domestic and international securities). Italy and the US will follow in the coming weeks.
The new service enables Clearstream to cut process fees for certification by 30%. It will be free of charge until the end of March 2006.
Customers will be able to access the "smart forms" on Clearstream web site via an interactive front end, complete them and send them to Clearstream for further processing.
The data entered by a customer into a "smart form" is encrypted into a two dimensional (2D) barcode. In the printout of the form, this data is included in a separate field as a 2D barcode. Upon receiving the form, Clearstream scans the barcode. This process decrypts the data, stores it in XML format and transfers it to Clearstream's core systems without any manual intervention.
"Smart forms" will greatly facilitate tax certification operations, a notoriously complex process with growing volumes. Due to recent changes to tax regulations the volume of certificates has grown 300% since 2003 and is projected to double again in 2006. "Smart forms" will replace manual data collection and input processes which increase costs as volumes rise and create exposure to the risk of loss, error or omission.
Mathias Ganz, Chief Operating Officer, Deutsche Boerse Group, stated: "This new solution combines innovation and efficiency. It is part of our ongoing efforts to reduce complexity and cost for customers and has strong benefits for them."