Capital Gains Tax (“CGT”) in portfolio investments has traditionally been overlooked by many in the investment management industry, since it was typically insignificant, and any CGT that did arise was addressed by the fund administrators. Over a number of years, however, attitudes of both the taxpayer and tax authority have changed—a trend we expect to continue in line with the global trend towards greater regulation and fund transparency.
Governments in investment-class markets are increasingly imposing CGT on gains derived by non-resident investors. This can impact funds anywhere in the world, for example: a US or EMEA fund holding Indian, Pakistan and/or UK investments. The focus on net asset value (“NAV”) inaccuracies has also increased due to greater pressure from auditors, regulators, and investors to appropriately comply with all local tax requirements
The impact of non-resident CGT creates a number of challenges:
- 1. Difficulties in calculating NAV and ensuring CGT is appropriately accrued for, and to prevent any pricing errors
- 2. Tax agency and associated tax compliance, payment, and filing requirements
- 3. Preparing CGT numbers for statutory financial accounts while ensuring that correct accounting standards are being appropriately applied
To support your existing in-house capability, we have developed iPACS Global CGT as part of the iPACS Fund Tax Reporting suite of solutions. iPACS Global CGT is a disruptive tax technology, developed by Deloitte for asset managers and asset servicers, to help them manage portfolio-level CGT. It provides a single solution with a global, technology-led offering, providing efficiency while improving quality.
Robotic data extraction from over 30 administrators
Daily, weekly, monthly or yearly calculations possible depending on local requirements
Automated data cleansing and enhancements where needed
Multiple asset class coverage
Scalable and iterable - can grow and adapt to your business needs
Senior expert sign off on your calculations by local Deloitte specialists
How it works
Automated data collection and manipulation
Our iPACS Global Capital Gains Tax technology allows us to collect data directly from fund administrators, and calculate global CGT.
Monitor your CGT accruals
The technology also provides you with dashboard analytics so that you can monitor your CGT accruals on a real time basis.
Seek further advice
With direct access to a dedicated team of Deloitte specialists, any questions or concerns you may have are answered without delay.
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