The GOAL Group’s Global Recoveries Ltd and TaxBack Ltd have issued two reports iwhich show the huge sums unclaimed by companies US and Europe. 

Unreclaimed funds from Security Class Actions 2000-2012
In the 12-year period from 2000 to 2012 investors’ non-participation in US securities class actions resulted in over US$18bn being ‘left on the table’ unreclaimed, with just over US$4bn attributable to European investors according to GOAL Group analysis.

A research note from the global withholding tax and class action services specialist suggests that non-participation rates have radically improved outside the US since 2007, with the group’s analysis of its class actions knowledge base showing that global non-participation is now between 23% and 24%, with marginal differences between US and non-US eligible investors.  This contrasts with the early years after the Millennium, when non-US investor participation rates were very low indeed.

Historically, non-participation in US securities class actions has cost investors and funds dearly, says Goal. Now, however, with the increasing recognition of fiduciary responsibility to ensure effective participation in relevant securities class actions, and recoup investors’ rightful returns, responsible parties can no longer ignore the opportunity to claim damages to which they are legally entitled.

UK investors forego £1bn in unreclaimed tax 2011
UK investors are missing out on more than £1 billion through failing to reclaim tax on income from cross-border securities, according to a new report from GOAL Group.

GOAL said income earned on cross-border securities is subjected to withholding tax in the country of origin, but a portion of that tax may be reclaimed by custodians on behalf of their clients. However, the company said that worldwide around 25% of reclaimable withholding tax lies unreclaimed in foreign tax systems every year, and pointed to a “clear opportunity” for custodians to increase the scope and efficiency of reclamation services.

The UK was second only to the United States in terms of unreclaimed tax. According to the report, US investors had £1.9 billion in unreclaimed tax outstanding last year, while the figure sat at more than £10.5 billion worldwide.