Fund managers are losing $6 billion every year because they
are not reclaiming the withholding tax that they are entitled to,
according to a new report. Investors and custody banks have been
aware of the problem for years, but this is the first time that
anyone has measured how much the fund managers are owed.
The scale of the problem is likely to surprise fund managers,
who are already struggling to eke returns out of difficult market
conditions. The fund managers themselves are not legally able to
claim tax rebates directly - it is the responsibility of custodian
banks to approach the tax authorities and request the money.
But a combination of clumsy bureaucracy on the part of...
