Tax is a product not a task

Published on March 31, 2016   9 min

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Hello, and welcome. My name is Ross McGill, and this is a short presentation about tax and how it should be treated as a product and not a task in the custody world.
I'm going to give you the frame of reference first. The client in this instance in late 2014, early 2015 was a Tier 2 European custody bank. They covered 30 markets for their clients, and they did that using a managed counterparty network of subcustodians. Their tax processing model was quite typical of most second tier custody banks. They used third-party tax software that they bought from someone else. They have an in-house staff. This one had 15. Those staff were covering relief at source, quick refund, and long form claims in those 30 markets. The net result was that they were filing about 20,000 tax reclaims, but they only did that once a year. And they only do tax reclaims for clients who specifically ask for that service. So when we were approached by this bank, the purpose of the case study was to assess the value of whether outsourcing would work for them or not, and if so, what benefits it might bring.