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: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

Challenges of the New Regulatory Landscape: Data Management Summit London Preview

The regulatory landscape for financial institutions has rarely been in greater flux than now, placing new challenges on the technology and data that will be critical to satisfying the requirements of overseers. While digital innovations are offering organisations the opportunity to meet their compliance obligations with greater accuracy and efficiency, they are also encouraging regulators...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Regulatory Data Handbook – Third Edition

Need to know all the essentials about the regulations impacting data management? Welcome to the third edition of our A-Team Regulatory Data Handbook which provides all the essentials about regulations impacting data management. A-Team’s series of Regulatory Data Handbooks are a great way to see at-a-glance: All the regulations that are impacting data management today...