Tax Expense Calculations
pControl Tax Expense Calculations automates the calculation of tax expense and deferred tax values. Tax expense calcuations may be undertaken daily or periodically to deliver accurate provisioning within unit pricing processes.
Tax Expense Calculations imports the fund’s income, expenses, unrealised gain values or any other account balance required to accurately calculate tax expense and deferred tax values for individual funds or single taxable entity groups of funds.
Accuracy in the calculation of a fund’s tax position creates both confidence in net asset values and transparency of after tax performance, which leads to improved tax management in the investment process.
- Tax Expense Calculations support:
- Fund entities
- Single taxable entities with multiple sub funds
- Individual investor accounts
- Flexibility to configure jurisdictional specific calculations and reporting, including:
- Carried forward income or tax losses
- Capital losses allocated to capital gains
- Unrealised capital loss allocation to unrealised capital gains
- Determination of deductible foreign withholding tax credits
- User defined allocation of attributes to tax category including:
- Association of related income and withholding tax categories
- Allocation of tax source
- Allocation priority of expenses to income
- Allocation priority of capital losses to realised capital gains
- Treatment of withholding tax for distribution
- Loss reallocation
- Jurisdictional or fund specific allocations
- Automation of Deferred Tax Asset (DTA) and Deferred Tax Liability (DTL) calculations.
- DTA / DTL calculations include ability to utilise tax losses or quarantine capital losses.
- DTA / DTL tax rates and discount rates maintainable at individual fund entity level.
- Provides detailed work papers including:
- Capital gains / losses YTD
- Income and withholding tax YTD
- Expenses YTD
- Expenses allocated to income
- Income available after expenses
- Reallocation of Losses
- Tax expense pre-tax credits
- Foreign tax credit offsets
- Other tax credit / rebate deductions
- TFN tax credit deductions
- Tax expense summary
- DTA / DTL values for calculation
- DTA / DTL calculation
- Distribution control record allows navigation from summary to detail level with ability for user to approve or re-run processing.
- Common tax rule framework supports Distribution Calculations and Tax Expense Calculations.
- Rules and calculation engine provides flexibility and ease of implementation of taxation and legislative changes.
- Delivers rich client and SLA compliance reporting.
- Full audit trail of all calculation activity allows for review by all stakeholders and auditors.
- Production Summary dashboard delivers progress monitoring of all tax expense calculation activities for each processing date.
- Attention Status Monitor dashboard provides real-time exception monitoring for any activity with critical completion or Service Level Agreement deadlines.
Tax Expense Calculations may operate as a standalone calculation process or can be integrated within:
- NAV / Unit Pricing end-to-end control framework for automated pricing upon approval of tax expenses
- Distribution Processing end-to-end control framework for automated calculation upon approval of all required distributions within the investment structure.
The Tax Expense Calculations end-to-end control framework and standard process template deliver a known end-state with defined target metrics. This simplifies client re-engineering decisions and ensures a predictable time-line to benefits.
The Tax Expense Calculations capability is included within the following solutions: