IDB Tax Reimbursement Benefit Seminar 2013 Settlements

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IDB Tax

Reimbursement

Benefit

Seminar –

2013 Settlements

September 23, 2014

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Introductions

Tax Reimbursement Benefit Overview Process with Deloitte

Settlement Explanation Advances Information Security Deloitte Technology Q&A

Agenda

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Your Deloitte Team

Frances Dinkins Tax Director Juan Monroy Tax Sr. Consultant Robert Creighton Tax Manager Carolyn Leslie Tax Sr. Manager Isabel Garzon Tax Consultant Tomohiro Nibe Tax Consultant

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Scope of Deloitte’s Engagement

• Calculate tax settlements for employees and retirees who pay tax on IDB income

• Review and advise on current process and methodology

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IDB Retiree Tax Hotline:

• 1-202-623-2766

IDB Retiree Priority Email Address:

• [email protected]

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Tax Reimbursement Benefit

Overview

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Copyright © 2014 Deloitte Development LLC. All rights reserved. Quarter 1 2 3 4 1 2 3 4 1 2 3 Tax Due 4/15 6/15 9/15 1/15 4/15 6/15 9/15 1/15 4/15 6/15 9/15 Advances • 2013 • 2014 • 2015 File Return • 2013 • 2014 Submit TRs • 2013 • 2014 Settlement • 2013 • 2014

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1. “Settlement” = 2013 tax liability on IDB pension

2. Cash settlement = balance owed to IDB/retiree for 2013 3. 2014 Q3 & Q4 advances

4. 2015 Q1 & Q2 advances

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• 2013 Form 7R published March 24, 2014

• Your 2013 tax documents and IDB 7R Form were due by July 9, 2014

• Settlements processed via August payroll

• Letters mailed and uploaded for your reference • If tax return deadline is extended to October 15, 2014

• Form 7R can be submitted noting that return will follow

• Settlement will be processed in month after return submitted

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You may send your documents to Deloitte via any of the following means:

• Fax to 1-703-738-1517

• Email to [email protected]

• Upload to your GlobalAdvantage secure account at

www.ga.deloitte.com

• Mail to Deloitte Tax LLP, 7900 Tysons One Place, Suite

800 Room 7SE-238, McLean, VA 22102 Available Document Submission Methods

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What:

• Letter summarizing results

• Tax settlement calculation

• Reconciliation of settlement and advances

• Payment voucher, if funds must be returned to IDB

When:

• Last week in August

How:

• Sent via regular mail

• Posted electronically, for your reference

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Retiree Settlement Methodology – Overview

2. Allocate Deductions Details 1. Allocate Income 3. Calculate Tax on IDB Income

Separate income into 3 categories: • Retiree IDB income

• Retiree outside income • Spouse income

Apportion deductions and exemptions among types of income: • Itemized/standard deductions vs. all 3 categories proportionately • Exemptions vs. all 3 categories proportionately

Calculate the tax on the IDB portion:

• Calculate tax on [spouse income + IDB income] only • Allocate calculated tax to IDB income proportionately

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Tax advance calculation:

• Projected income for 2014 plus 2013 final settlement

• Apply effective tax rate on IDB pension calculated 2013

• Result used to reconcile remaining 2014 advances due

• Also to calculate 2015 advances for first 2 quarters

Considerations:

• If 2013 tax was higher or lower than normal, due to a

one-off or unusual event, this may be taken into account in the calculation of advances

• Approach designed to minimize amounts owed to/from

the Bank following 2014 settlement calculation Request for Advances

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Late document submission:

• 2014 Quarter 3 advance was delivered to everyone

who received 2014 Quarter 2

• If 2013 documents remain outstanding at time of

December 2014 payroll:

• No 2014 Quarter 4 advance will be paid

• No subsequent advances until documents

submitted

Outstanding balance owed to Bank:

• Balances are due for payment by December 31, 2014

• If settlement balance is outstanding after this date, no

further advances will be processed until balance is paid to Bank

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• Deloitte is extremely careful with our clients privacy. Even though the Bank hired us, you are considered our client, too

• We maintain the highest levels of information security, in

line with those required of elite public accounting firms

• Your tax return data will not be available to anyone

outside of the Deloitte engagement team and authorized IDB personnel—unless required by law or audit

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• Your information is kept in our secure systems (outside of the Bank)

• It is accessible only by you and your Deloitte team;

and it may be shared with authorized IDB personnel for review

• When Deloitte receives your information, we upload a

copy to our secure system and then destroy any hard (paper) copies

• For 2013 and following years, we ask that you send only

copies of your tax returns

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Deloitte’s Global Employer Services practice (GES) uses a single global technology platform that allows us to:

1) Link our GES professionals and clients worldwide;

2) Provide streamlined program management, workflow, and communications; and

3) Provide real-time information for clients to assess and measure our performance.

Deloitte’s GES technology is an integrated set of tools that supports the IDB, the retiree population, and our GES professionals.

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• If you have an email address on file with the IDB or with Deloitte, you will receive two emails from Deloitte’s GlobalAdvantage automated system ([email protected]).

• These emails will contain your User ID and password and will allow you to access your account on Deloitte’s secure website – www.ga.deloitte.com

• You will then have been able to access the GlobalAdvantage site by using your email address and temporary password.

• When accessing the site for the first time, you will be asked to agree to the terms and conditions, change your temporary password, and select two security questions.

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• Once you have logged in, your personal home page will display.

• You can share your documents (Word, Excel, PDF, JPG, GIF) with Deloitte by uploading them through the “Documents” tile.

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• To upload your tax returns and your IDB Tax form 7R, simply click on “Add,” as highlighted in the screen shot below; elect the relevant tax year; upload the document; provide a description; and click on “Save.”

• Please pay attention when uploading to ensure that your documents are saved in relation to the correct year

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Our snapshot tool will show the status of your calculation. Because the Bank has asked Deloitte to provide calculations for all retirees at the same time, this tile will only be updated by Deloitte twice during the process in the corresponding year.

The first update will report that we have received your tax documents and then we will update again once the calculation has been finalized and delivered to you.

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Global Advantage Portal

Deloitte has also provided this platform in order to serve as an electronic repository of your tax information, letter and tax reimbursement

calculations by year, so that if at any time you need to access any of

these documents, you may simply log in to our site and either download a copy or print it for additional use.

It is important to know that only those retirees who have provided Deloitte with an email address will have access to this tool.

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Where to Go for Help

(technical issues such as browser setup, cookies, etc.)

Name Designation Email ID Contact Number

GA Help Main Deloitte GES Technology Helpline

[email protected] Inside the United States call: +1-888-427-5465

Outside the United States call: +1-615-882-6267

Open 10:00pm Sunday to

10:00pm Friday US Central Time (excluding major holidays)

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Simply type www.ga.deloitte.com on your web browser and click on one of the following two choices:

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What To Do if You Forget Your Password or User ID

If you forget your password, you will only need to provide your email address that IDB/Deloitte has on file.

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If you forget your User ID, please be advised that this is generally your email

address. If you use your email address and it doesn’t work, you may contact your IDB tax consultants team by email or by calling the tax consultant

hotline (202) 623-2766 for assistance with verifying your correct User ID. If you forget your password, you will only need to provide your email address that IDB/Deloitte has on file. An email with a temporary password will be

forwarded to your primary email address on record.

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