Tax Administration Programs
Mortgage lenders who maintain property tax accounts for their borrowers face a variety of challenges to ensure that the taxes are paid in a timely manner. Interacting with the more than 4,000 taxing authorities across Canada – each with its own processing requirements – can be difficult and labour intensive. Further complicating the process is the manual nature of the data exchange between lenders and taxing authorities.
D+H’s tax administration service streamlines and automates relationships with taxing authorities and can be tailored to meet each lender’s particular servicing needs. From a menu of services, each customer can define the level of support required – from simple delivery of information to full outsourcing of the entire tax department’s functions. The interaction with taxing authorities and the majority of the manual processing functions can be managed by D+H.
D+H’s tax service administration program includes:
- Tax account set-up to identify the correct municipality and assessment roll number
- Municipal registration to designate the lender as the mortgagee of interest
- Tax amount procurement as each taxing authority makes the information available
- Automatic data feed to upload tax data directly to the servicing system
- Direct disbursement from the borrowers’ tax accounts
- Balance and remit payments to the taxing authorities
- Reconciliation of refunds and exceptions from the taxing authorities
- Call centre capabilities
- Annual statements of tax account adjustment
- Capabilities for following up on clients who pay their own taxes, to ensure compliance
By enlisting D+H to manage their program, lenders achieve considerable automation and can reduce staffing levels and costs. They also limit their exposure to penalties, interest, and late fees, thus making servicing costs more predictable.