Capital gains tax (CGT) in portfolio investments has traditionally been overlooked by many in the investment management industry, since it was typically not significant and any CGT that did arise was dealt with by the fund administrators. However, over a number of years, attitudes of both the taxpayer and tax authority have changed—a trend we expect to continue in line with the global trend toward greater regulation and fund transparency.
Governments in investment-class markets are increasingly imposing CGT on gains derived by nonresident investors. This can affect funds anywhere in the world (for example, a US or EMEA fund holding Indian, Pakistan, and/or UK investments). The focus on NAV inaccuracies has also increased, since there is much greater pressure from auditors, regulators and investors to appropriately comply with all local tax requirements
The impact of nonresident CGT creates a number of challenges:
- Difficulties in calculating NAV and ensuring CGT is appropriately accrued for, and to prevent any pricing errors from arising
- Tax agency and associated tax compliance, payment, and filing requirements
- 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 Global iPACS Fund Reporting suite of solutions. Key to this solution, iPACS CGT is a disruptive tax technology, developed by Deloitte for asset managers and asset servicers, to help them manage portfolio-level capital gains tax. It provides a single solution with a global, technology-led offering that heightens efficiency while improving quality.
Robotic data extraction from more than 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 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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The services/technologies are representative of services across the global network and not necessarily those of the US member firm.