Coupon Entitlement / Div Processing / Stock Div Processing

When Eagle Accounting runs Coupon Entitlement, Dividend Processing, and Stock Dividend Processing, Eagle Accounting adheres to the following hierarchy to apply tax withholding and reclaim:

1. Eagle Accounting does not process tax withholding or reclaim on short positions, so if the position is short, Eagle Accounting exits the tax withholding process.

2. Eagle Accounting first looks at the entity's Tax Accounting Method. If the value in the entity's Tax Accounting Method is set to Gross Income, Eagle Accounting sets the Tax Rates to zero, and exits the tax withholding process.

3. If Eagle Accounting is running dividends processing, Eagle Accounting looks at the Tax Override Amount (tag 1272) on the dividend corporate action, and applies this value in the calculation of tax rates. For more information, see Set Up Overrides for Franked Dividend Processing.

4. If the entity's Tax Accounting Method is not Gross Income, Eagle Accounting looks at the Global Specific Tax Rate table for an applicable tax rate and tax reclaim rate, based on an entity, security, and effective date combination, that has a Distribution Type equal to Interest for a fixed income security, or, Dividend or Stock Dividend for an equity. If a match is found, Eagle Accounting applies the tax rate and exits the tax withholding process. If no match is found, Eagle Accounting looks through the Global Override Tax Treaty for a match.

5. If Eagle Accounting does not find a match in the Global Specific Tax Rate table, Eagle Accounting searches the Global Override Tax Treaty table for an Entity, Issue Country, Issue Tax Type, Distribution Type, and Effective Date combination. If Eagle Accounting does find a match for the combination in the Global Override Tax Treaty table, this triggers Eagle Accounting to search the Global Tax table for the best possible match that has the Override Indicator field is set to Yes (see below for the best possible match criteria). If Eagle Accounting does not find a match in the Global Override Tax Treaty table, Eagle Accounting searches the Global Tax Treaty table for the best possible match that has the Override Indicator is set to No.

6. Lastly, Eagle Accounting searches the Global Tax table for the best possible match that has the Override Indicator set to No, based on the following fields: Entity Country, Issue Country, Entity Tax Type, Entity Tax Qualifier, Issue Tax Type, Primary Exchange, Distribution Type, and the Begin and End Date of a tax rule. If a tax rate is found, Eagle Accounting applies that rate; if no match is found, Eagle Accounting uses 0 for the Tax Withholding and Tax Reclaim rates. While in the Global Tax table, Eagle Accounting tries to find the most restricting match.

Eagle Accounting processes matching sequentially, as follows:

1. Issue Country, (must be exact match)

2. Entity Country, (must be exact match)

3. Entity Tax Type, (must be exact match)

4. Distribution Type (must be exact match)

5. Effective Date of processing (has to be during an applicable tax period).