Mutual fund tax services

In Financial Services

Our technology solutions, combined with the bench strength of our mutual fund tax professionals, translates to cutting edge mutual fund tax services. From the preparation of taxable income through tax reporting, our services are customized to fit your business needs.

What EY can do for you

Connectivity and rapid delivery through tax technology

With regulated investment companies (RICs) facing multiple disruptions from technological and regulatory fronts, and mutual fund tax processes becoming more dynamic and challenging, advanced technology-based transformative tax services are gaining market attention and are transforming the way traditional tax functions are carried out. Innovation, artificial intelligence and process automation are helping companies achieve business excellence while augmenting processes and increasing ROI.

At EY US, we are at the crux of digital innovation and we have evolved our tax technology practice to build innovative platforms and solutions to deliver leading-edge mutual fund tax services — from data capture through tax reporting — thus creating an automated end-to-end technology enablement solution for modern tax requirements. Tax-specific technological advances have made it possible today for companies to evolve at a faster pace and lead the way for total enterprise transformation.

Our technology solutions, combined with the bench strength of our mutual fund tax professionals, translates to industry-leading mutual fund tax services. From the preparation of taxable income through tax reporting, our services are customized to fit the business needs of our clients. In addition to providing core tax services, our technology platform allows for customized reporting and analytics that enable clients to manage funds in a more efficient way.

Our integrated global tax technology enablement solutions include:

EYTaxSpace™ – our platform for delivering leading-edge tax compliance

  • Real-time tracking and online review via embedded workflow management and analytics in a client-accessible dashboard
  • Reports, returns and analytics can be reviewed in real time 24/7
  • Gathering data, validating data and tracking work flow is done via the EYTaxSpace™ dashboard

Automatic data management network (ADMN)

A strategic engine that automates the delivery of end-to-end data for clients. Robust analytics are generated from a streamlined data aggregation process from multiple sources, including third parties and administrators.

Securities Analysis Module (SAM)

Industry-leading technology solution that automates the tax analysis of portfolio trading activity and provides an audit ready integrated tax report. In addition, SAM allows for customized data analytics and reporting to assist clients with operational and business issues.

The RIC module

Offering the best of EY people, process and technology, our clients gain access to a network of professionals and tools that provide both flexibility and customization for tax service needs, including comprehensive work papers for audit purposes.

EYTaxSpace™ end-to-end solution

Robotic process automation

  • With robotic automation, our virtual software BOT performs routine activities that were originally carried out by human resources. This allows you to refocus your time and effort on higher-value activities like true tax planning and analysis.

Global Withholding Tax Reporter (GWTR)

  • One-stop information source for withholding tax rates and rules around the globe with content, customized functionality and support designed exclusively for financial services firms.
  • Market-leading web-based application providing technical information on withholding tax rates, fund-level taxes, treaties, procedures, forms and instructions for the following:
    • Portfolio dividends
    • Portfolio interest
    • Capital gains
    • Mutual fund distributions
    • Real estate investment trust distributions
    • Alternative investment strategies and other financial instruments
    • Value-added tax (VAT) and goods and services tax (GST)

Additional tools designed for mutual fund companies include:

  • Rapid Security Analyzer (RSA)
  • Passive Foreign Investment Company Analyzer (PFIC Analyzer)
  • Automated PFIC Mark-to-Market Service
  • Corporate Actions Tax Analyzer (CATA)
  • Per Se Analyzer
  • Rapid Reclaim Analyzer

Leading with Innovation, while carrying forward the legacy

While we are forerunning innovative tax technology solutions, we still provide customized tax services tailored to address the specific needs of fund complexes of all sizes. We offer a complete range of tax services, including, but not limited to, calculation of year-end taxable income and related financial statement tax footnotes, excise tax distributions, tax return preparation, interim tax qualification testing review, assistance with the year-end shareholder tax reporting, analytics and reporting and assistance with ASC 740 documentation.

  • Recurring services

    Preparation/review of excise tax distributions

    Reporting and analytics

    EYTaxSpace™ is at the core of our solution with all modules integrated and synthesized within our system.

    • 100+ EY tax and technology people dedicated
    • Custom-built system (v3.0)
    • Tens of millions spend to date
    • Technology that can easily be configured through modules

    Preparation/review of 1099 designations and related shareholder mailings

    RIC Module

    A taxable income calculation engine that produces supporting documentation for all tax adjustments that are linked to underlying data points.

  • Non-recurring services

    Tax-related work associated with year-end financial statements

    Securities Analysis Module (SAM)

    This calculation engine of EYTaxSpace™ analyzes securities trading patterns to calculate tax basis, tax holding period and tax character through an integrated and customizable solution.

    Year-round assistance with the tax compliance function

    Automatic Data Management Network (ADMN)

    Data collection forms are dynamic depending on data and responses required. This lets EY US and clients collect the data they need via a streamlined process, reduced risk of error, and faster delivery.

    Assistance with non-shareholder information reporting

    We can prepare 1099-MISCs for directors, 1042/1042s for non-US directors, and 1099s for vendors and service providers.

    Tax-equivalent yield computation

    We can perform federal, state and local tax equivalent-yield computations involving municipal bond funds as well as funds investing in US government obligations.

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