SOURCE: Acupay System, LLC

Acupay System, LLC

June 03, 2009 15:33 ET

Acupay Does It Again by Making Withholding Tax Relief at Source Available on Citibank's Telefonica S.A. American Depositary Shares

NEW YORK, NY--(Marketwire - June 3, 2009) - For the second time ever, and for the first time on Telefónica S.A. American Depositary Shares (ADSs), Acupay helped investors to secure Spanish withholding tax relief at source on Spanish ADSs held at DTC! Acupay launched the first tax relief at source service on a Spanish ADS in 2008 on Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) ADSs.

Citibank's Telefónica ADS just paid its semi-annual dividend on May 20, 2009, and for the first time, more than 30% of the dividend was paid with tax relief at source. A similar percentage of BBVA ADS shareholders also have been enjoying dividend withholding tax relief at source since 2008. This incremental money received on the ADS payment date as opposed to months or even years later, is valuable revenue for investors and depositaries alike. Acupay's success in working with The Depository Trust Company (DTC), depositaries, issuers and custodians to maximize tax relief at source is particularly relevant in today's economic environment where every cent counts.

Acupay leveraged its cutting edge technology and servicing capability to offer investors in Telefónica ADSs the opportunity to obtain tax relief at source. Spain's withholding tax rules require 18% tax to be withheld on dividend payments to cross-border investors, and for claims to be filed by investors that are resident in countries that have income tax treaties with Spain, in order to obtain refunds of any excess tax withheld. The Acupay System works in concert with DTC's Elective Dividend Service system, allowing such claims to be filed electronically resulting in relief at source on dividend payment date. Acupay also leveraged its 6166 Wizard, located at, which enables U.S. shareholders to easily obtain the required certificates of residence from the Internal Revenue Service. Investors that missed the relief at source opportunity will still be able to file via Acupay for quick refunds up until June 4th, 2009 or via standard long-form claims thereafter until the statute of limitations period expires.

Sophisticated cross-border investors have come to know that one of the hidden costs of owning foreign securities is that dividend and interest payments are often subject to high rates of local withholding tax and the process to secure the benefits of withholding tax relief under income tax treaties or domestic tax law provisions is often elusive and costly. For many investors the lack of at source tax relief is a road block to realizing the full return on their investments. If tax relief at source is not available, the cost of pursuing a reclaim can often outweigh the benefit.

Acupay, working together with depositaries, depositories, custodians, issuers, tax authorities and others, employs innovative technology and processes to simplify and demystify the tax relief process. In addition to withholding tax relief on securities held at DTC, Acupay's services can be used for tax relief on securities held at Euroclear, Clearstream and elsewhere. Acupay is an affiliate of Bondholder Communications Group LLC and has offices in New York, London and Madrid.

For more information on Acupay's services please visit or contact William Salva ( or Andrew Rose ( at 212-422-1222