Through a contracting relationship with a Big Four accounting firm, Exchange Data International (EDI) now has access to the taxability details of corporate actions from publicly traded global corporate equities. This will allow investors to understand the applicable U.S. federal and Canadian income tax considerations before events occur.
Corporate actions are reviewed by independent, experienced tax professionals. Taxability analysis is provided even when a company’s public documents are silent regarding tax treatment. Supporting documents used to review the corporate action, including proxies and registration statements, are provided.
Updates to corporate actions are monitored, and taxability is updated as needed. Ownership information is provided for corporate actions potentially subject to Section 302 analysis for U.S. federal income tax purposes. Form 8937 is provided for corporate actions, along with a breakdown of cash distributions between ordinary income and return of capital.
This identification of corporate actions taxability supports a proactive approach rather than a reactive approach, helps reduce in-house costs, and provides an open line of communication with the contractor’s dedicated corporate actions tax team.
Everything you need to manage the taxability of corporate actions:
- Review of corporate actions by independent, experienced tax professionals
- Taxability analysis when company public documents are silent regarding tax treatment
- Monitoring of corporate actions with taxability updates as needed
- Supporting documentation used in the review process, including proxies and registration statements
- Ownership information for corporate actions potentially subject to Section 302 analysis for U.S. federal income tax purposes
- Form 8937 for corporate actions and a breakdown of cash distributions between ordinary income and return of capital
- A proactive approach rather than a reactive approach
- Reduced in-house costs
If your organization is looking to reduce risk, improve accuracy, and gain confidence in corporate action tax processing, EDI is ready to help.
