Markit Counterparty Manager: Tax Utility
Centralised service to simplify the collection, validation and secure permissioning of tax documents.
The Tax Utility allows counterparties to exchange
validated tax documentation to support ongoing
monitoring for FATCA and the Common Reporting
Standard (CRS).
US tax regulations require tax forms be collected by withholding agents to
appropriately identify payees and account holders, and determine the applicable
withholding rate. Current methods of collection and the complexity of the forms
have proven burdensome for the financial industry. In addition, FATCA imposes
30% mandatory withholding tax if a beneficial owner’s tax status is not correctly and
timely ascertained. Meanwhile, global regulatory compliance costs have significantly
increased due to changes in cross border tax laws and additional regulations such as
European Union Savings Directive (EUSD) and CRS.
The Tax Utility collects, validates and monitors tax forms for clients and securely
distributes the information to banks and counterparties. It follows the guidelines for
third party repositories as outlined by the IRS in the FATCA FAQ. Offering efficient
remediation and onboarding of entities through a centralised platform and client
outreach team, contributors can easily permission tax documents to any sellside
institutions on the platform, as well as request their own tax documentation. For the
sellside, a master set of tax data and documents are collected and validated to an
industry standard and are maintained and monitored on an ongoing basis. This helps
to reduce cost through operational and technological efficiencies and eliminates
duplicative requests for data and documentation. The platform enables corporates
and asset managers to maintain tax data and documentation in a single place for
dissemination to banks subscribing to the service.
Accurate
Standardised
Validates client tax status using
industry standard validation tools.
Ongoing monitoring of client tax status
and resolution of discrepancies due to
change in circumstance for both tax and
KYC regulations
Industry consistent approach to tax
regulations through standardised
processes and benchmarks
Efficient
One time setup and secure delivery
of golden source of tax data. Central
repository of data and tax forms that can
be easily reused across tax, KYC and
CRS mandates
Improved customer experience
Lowers the burden on financial
institutions’ customers with trained
outreach team with expertise in the
documentation required
113K+
entities on the platform
Customers
Asset managers
Banks
Corporates
Fund administrators/custodians
Hedge funds
More information
For more information on the products
and services from Markit, please contact
us at [email protected] or call one of
our regional offices:
London
+44 20 7260 2000
New York
+1 212 931 4900
Amsterdam
+31 20 50 25 800
Boulder
+1 303 417 9999
Dallas
+1 972 560 4420
Frankfurt
+49 69 299 868 100
Hong Kong
+852 3478 3948
Tokyo
+81 3 6402 0130
Toronto
+1 416 777 4485
Singapore
+65 6922 4200
Sydney
+61 2 8076 1100
markit.com
Markit Counterparty Manager: Tax Utility
The Tax Utility leverages Markit’s existing Counterparty Manager database,
which includes access to 113,000+ legal entities across buyside firms and
corporates. The utility enables buyside firms and corporates to upload Forms W8 or
W9 which are validated through Markit | CTI Tax Solutions and permissioned out to
their bank counterparties. Buyside firms and corporates benefit from a centralised
repository within Markit Counterparty Manager to communicate any key changes
in circumstances which may affect their tax or regulatory status.
Buyside Dashboard
About Markit |
CTI Tax Solutions
Markit | CTI Tax Solutions helps
financial institutions and multi-national
corporations comply with tax rules
around cross border payments. Drawing
on extensive experience in domestic and
non-resident withholding (Forms W-8,
W-9, 8233), information return reporting
(Forms 1042-S, 1099 and 8966), as well
as the Foreign Account Tax Compliance
Act (FATCA) and Common Reporting
Standard (CRS), Markit | CTI Tax
Solutions helps improve confidence in
tax compliance audit readiness.
Sellside Entity Screener
Copyright © 2016 Markit Group Limited
Markit Counterparty Manager: Tax Utility – 23/02/2016