Download e-book for iPad: Investment Withholding Tax: Best Practice and Strategies for by Ross McGill (auth.)

By Ross McGill (auth.)

ISBN-10: 0230246850

ISBN-13: 9780230246850

ISBN-10: 1349307173

ISBN-13: 9781349307173

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Extra resources for Investment Withholding Tax: Best Practice and Strategies for Intermediaries and Investors

Sample text

However, in any commercial and marketing environment, its important for those at the business end of custody to understand enough of the backoffice detail and of the investor issues, to make intelligent decisions about the value any of their services might bring to an investor. Some custodians, for example, exclude tax reclaims from custody contracts or limit the extent of their services in this area because of the perceived complexity and cost. What should concern the investment community is the extent to which the custodian has explicitly informed the investor of this extent and if so, what the likely loss in funds will be based on the mix of the portfolio.

Since we’ll be thinking about automation later in the book, I’ve shaded those activities that are essentially manual in grey, and marked those processes that are manual as dotted lines. D O C U M E N TAT I O N The single biggest factor that affects entitlement to a favourable rate of tax is documentation. Documentation sits at the heart of the process, irrespective of whether it’s relief at source, quick refund or long form.

CHAPTER 2 Context Having established the broad principles under which withholding tax works, we now move on to consider the context in which these principles operate. There are many aspects to context, which will be discussed in this chapter. These include ᭿ materiality, ᭿ value of assets under management, ᭿ tax reclaim statistics and market share, ᭿ growth in cross-border AUM, ᭿ regulation and peer groups and ᭿ corporate governance – issuers and investors. All of these issues give flavour to the principles underlying withholding tax.

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Investment Withholding Tax: Best Practice and Strategies for Intermediaries and Investors by Ross McGill (auth.)


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