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

Upcoming Webinar: How to harness the power and potential of ownership data

Date: 5 October 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The importance of ownership data has escalated over the past few years as financial institutions have acknowledged its potential. Key use cases include integrated risk assessment, which uses ownership data to help financial institutions gain a clear understanding of...

BLOG

Encompass Plans Global Growth Acceleration Following £25 Million Funding Round

Encompass, a provider of automated Know Your Customer (KYC) solutions, has completed a capital raise of £25 million. The funds will be used to accelerate global growth, particularly in the US where the company opened its first office in New York in October 2021, and in Europe where an office was recently opened in Amsterdam....

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

The Global LEI System – A Solution for Entity Data?

The Global LEI System – or GLEIS – has been in development since the middle of last year. Development has been patchy at times, but much has been done, leaving fewer outstanding issues, but also raising new questions. What’s emerging is a structure for the GLEIS going forward, complete with a mechanism for registering and...