About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Markit and CTI Seeking to Establish Agreement with IRS for Sharing of US Tax Forms

Subscribe to our newsletter

Markit is coordinating an industry-wide initiative, in partnership with Compliance Technologies International (CTI), to help ease the administrative workload associated with sharing US tax forms. As part of this initiative, Markit and CTI propose to seek a memorandum of understanding with the Internal Revenue Service (IRS) which will enable financial institutions to share US withholding tax forms submitted electronically by beneficial owners and intermediaries. All investors need to provide these forms, known as W-8 and W-9 tax forms, when investing in the US to prove their withholding tax status.

The new service would be available via Markit Document Exchange and the tax validation tools provided by CTI, including its electronic W-8 application, will be integrated within Markit Document Exchange, allowing financial institutions to submit, store, review and exchange electronic W-8 tax forms with multiple counterparties using a single platform.

The initiative is backed by the following financial institutions: Bank of America Merrill Lynch, Citi, Deutsche Bank, JPMorgan, Loomis Sayles, Pimco and Royal Bank of Scotland.

Penny Davenport, managing director and head of Markit Document Exchange at Markit, says: “As cross border tax issues remain at the forefront of governments’ priorities, we expect the administrative burden associated with collecting and evaluating withholding tax forms to grow dramatically over the next few years. We are delighted to help financial institutions fulfil their tax requirements in a way that is efficient from an operational point of view.”

Dan Burt, executive director and co-founder of CTI, says: “Integrating CTI’s E-W8 application into the Markit Document Exchange brings two industry standards under one comprehensive offering for the financial services community. Given the overlap of our clients and the complementary nature of our product offerings, the synergies created by our relationship will be very beneficial for the financial services industry.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Managing Off-Channel Communications Compliance

Managing off-channel communications – business interactions occurring outside of approved corporate systems – continues to challenge firms’ compliance efforts. The rise of personal messaging apps, social media, and other unmonitored channels – for example, messaging functionality embedded in an order management system – exposes firms to substantial regulatory risk. Enforcement actions by regulatory bodies, such...

BLOG

13 Leading AI-Based Data Management Capability Providers

Institutions are facing huge operational burdens as they ingest huge volumes of data, demand real-time analytics and face stringent regulatory scrutiny. Consequently, the new data landscape is rendering traditional data management systems inadequate for the growing number of use cases to which data is being deployed. This has necessitated a shift towards modern data management...

EVENT

AI in Capital Markets Summit London

Now in its 3rd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...