How we developed an ICT solution for obtaining refunds on debt portfolios

The client’s problem

One of our clients, a Scandinavian investor, has acquired a Dutch debt portfolio from an Energy supplier, containing thousands of consumer debts. If the debts are not fully paid within one year after invoicing, a part of VAT and Energy taxes that were paid by the Energy supplier can be refunded to the new debt owner.

As the refundable taxes can be about 40-50% of the nominal debt value, tax refunds have a major impact on the return of investment and profitability of the portfolio.

Debt portfolio: a brief explanation

Debt portfolio: A debt portfolio can contain (many) different individual claims (or debts). For instance, debtors of a telecom company, who didn’t pay their phone bills. Together these claims (or debts) form a debt portfolio that can be sold to third-parties. Usually, the debt is put up for sale by big organizations and can be bought for a relatively small amount of money. The buyer can collect the debts and make profit.

Our solution

We have developed an ICT solution for obtaining refunds of taxes on debt portfolios. With this tool, we process data received from debt collection agencies and bailiffs. The tool produces timely requests for refunds of taxes, and also the necessary tax returns that have to be filed for ‘after payments’.

The current situation

With this tool, we helped our client to optimize his return on investment, while at the same time we relieved our client from all relevant administrative processes, which saved our client large amounts of paperwork and time.

Note: due to the privacy of our clients, this case study provided by TGS lime tree does not include any names, numbers and other sensitive information of our clients, partners and other parties involved.