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Euroclear Bank today launches an electronic tax relief and reclaim management service – TaxGenixTM. This new and innovative development will help market participants automate the filing for, and processing of, tax relief and tax reclaims involving international and domestic securities from 28 markets worldwide.
Holders of foreign bonds, equities and taxable Eurobonds are often subject to withholding taxes, depending on the jurisdiction of the instrument.
Given the lack of harmonised tax laws and procedures across the global capital markets, successfully attaining relief or reclaims of taxes already paid in a timely manner is an administrative burden.
With unparalleled breadth of coverage, TaxGenix empowers clients to manage centrally and electronically their "quick" tax-reclaim and "relief- at- source" filings across a large range of securities held in Euroclear Bank. At the click of a button and regardless of location, clients can access information on tax-relief filings and payment deadlines, and the relevant tax certification forms. Once clients input the relevant instructions, they may follow the lifecycle of their tax-relief related operations in real time. TaxGenix significantly improves processing time and back-office efficiency, and will be free of charge until mid-2011.
Jo Van de Velde, Managing Director and head of Product Management at Euroclear, said: "Clients often struggle with the various requirements and paper documentation needed to file tax reduction requests, which differ by asset and jurisdiction. Now, by using TaxGenix, they are able to view upcoming tax events on their holdings, reconcile tax-related payments and manage their tax-relief certifications from a single, secure portal. It is a highly sophisticated tool that puts the client in full control. Clients have never before had such a simple and efficient way to manage burdensome tax-relief procedures in order to avoid excess taxation. With TaxGenix, they can leave behind the problems associated with manual procedures."
Catherine Delory, head of Tax Administration at Bank Degroof, commented: "TaxGenix has great added value. From just one interface, it is possible to input tax certifications, provide tax breakdowns and consult tax reports. Furthermore, all of our pending claims are updated and accessible in real time, providing intelligence on exactly where in the lifecycle each claim is situated."
More features will be added to TaxGenix over the next few months, providing full straight-through processing from client input through to the receipt of the final cash payment for all types of tax reclaims.
