Adding Tax in Atlantis

Overview

Atlantis offers firms the ability to electronically settle tax in addition to the brokerage fees that accrue on each trade. Firms are not required to settle tax, however this feature is offered to all participants. This tutorial will provide information on the functionality. 

Which Participants Can Add Tax to Trades?

In Atlantis, Receivers have the ability to apply tax on trades through the "Amend" functionality by applying a "Tax Rate" amendment. This can be done via the Summary UI, Excel Upload, or the API. Payers cannot apply tax on trades. 

How to Add Tax in the Summary UI

The option to apply a "Tax Rate" amendment is found on the Summary Screen of Atlantis in the Actions menu. 

Please note the following:

• Receivers should only add in the Tax Rate because Atlantis will calculate the Total Tax Amount automatically
• The Tax Rate should be entered as a whole number reflecting the percentage of the tax
  • For example, if users would like to add a 10% tax rate to a trade, they should type in "10" in the "Tax Rate" field
• Tax Rate Country Code field is optional but provides information to counter parties regarding which country's tax rate is applied on the trade
• Tax Rate Country Codes need to be entered as Standard ISO Codes (list found under "LDEB Codes" tab in the excel download)

How to Add Tax in the Excel Upload

The option to apply a "Tax Rate" amendment also exists in the Excel Download/Upload functionality of Atlantis.

Please note the following:

• Receivers will need to mark trades with an "Amend" action in Column A and provide a Comment in Column B of the excel download when adding tax
• Receivers should only add in the Tax Rate in the "Adjusted Tax Rate" column because Atlantis will calculate the Total Tax Amount automatically
• The Tax Rate should be entered as a whole number reflecting the percentage of the tax
  • For example, if users would like to add a 10% tax rate to a trade, they should type in "10" in the "Tax Rate" field
  • The Excel template will automatically update the formatting of this field to a percentage. For example, typing in "10" will show up as "10.000%" in the field
• Tax Rate Country Code field is optional but provides information to counter parties regarding which country's tax rate is applied on the trade
• Tax Rate Country Codes need to be entered as Standard ISO Codes (list found under "LDEB Codes" tab in the excel download)

How to Undo a Tax Amendment

If a Receiver adds a tax rate to a trade and then needs to undo the amendment, they should utilize the "Undo Tax Adjustment" functionality of the Excel Download. 

Please note the following:

• Receivers need to select the "Undo Tax Adjustment" Action when trying to reset the tax rate on a trade and upload the action into the system for processing
• Post the reset of the tax rate, Receivers will need to Amend and/or Affirm the trade as needed
• If the trade has already been Affirmed, Receivers will not be able to perform the "Undo Tax Adjustment" action. They should request the Payer to Reject the trades in order to update the trades back to Receiver Review

How to Reject a Tax Amendment

If a Payer disagrees with the tax rate added to the trades by the Receiver, they have the option to Reject the trade in order to send trades back to the Receiver for amendments. The Rejection can be done in the Summary Screen under the Actions menu and/or through the Excel Upload. 

The Payer should use the following Reject Reasons if applicable:

Incorrect Tax Rate Country Code - if the Payer disagrees with the Tax Rate Country Code added on the trade by the Receiver, this rejection reason should be used; the Payer should leave a comment stating the correct Tax Rate Country Code to be used

Incorrect Tax Rate - if the Payer disagrees with the Tax Rate added on the trade by the Receiver, this rejection reason should be used; the Payer should leave a comment stating the correct Tax Rate to be used

Effect of Tax Rate on Total Fee Amount Calculation

When a tax rate is added to a trade, the system will calculate the following fields:

• Adjusted Tax Rate - this field shows the Tax Rate entered by Receiver (ie. 10.000%)
• Adjusted Tax Rate Country Code - this field shows the Tax Rate Country Code entered by Receiver (ie. AU)
• Current Tax Amount - the total tax amount applicable to the trade; this field is calculated by Atlantis when a Tax Rate is added to the trade
  • Current Tax Amount = Calculated Fee Amount x Adjusted Tax Rate
• Current Total Amount - the total amount billed by Receiver; this field is calculated by Atlantis when a Tax Rate is added to the trade
  • Current Total Amount = Current Tax Amount + Calculated Fee Amount