Initialize Tax Rates

You can initialize tax rates using the PACE windows or an uploader tool.

Post-tax post liquidation returns take into account the time period of the shares held. The tax table tracks the time period and appropriate tax rate.

The best way to set up a new system is to:

Create field attributes for the tax rates.
Prepare an SQL script to insert the tax rates.

This section applies to use of tax rates for Mutual Fund reporting. Eagle provides a separate set of guidelines for setting up tax rates and using them in the Performance. See Performance Calculation.

Create Tax Rate Field Attributes

You need tax rates for each type of tax rate you are storing, including the LTCGT, MTCG, STCG, and Income tax rates. All of these field attributes point to the database PACE_MASTER; the table is TAX_RATES, and the column is TAX_RATE.

The Process is set to Local Tax Rate Fetch for mutual funds and the Field Indicator is always Tax Rate.

Make each of these fields available to the Performance Performance Analysis Report.

Here are a few notes about the tax rates:

PACE does not include pre-installed tax data. You need to load the tax rates into the system.
There is no logic in the interface to prevent you from entering incorrect ranges for a tax. Instead, if ranges either overlap or have a gap, dynamic returns are not calculated. The processing log indicates that it could not calculate a return because of overlapping tax rates.

For example, if the short-term rate is set for a maximum of 18 months and the long term rate begins at 12 months, PACE does not calculate a post-tax return.

Prepare a SQL Script to Insert Tax Rates

The best way to initialize the system with tax rates is to insert them via an SQL script. Here is a sample insert statement for this table:

insert into pace_master..tax_rates values (20, 2, 1526, '1/1/1995', .50, 'DEMO', '3/1/2013', 0, 12, '3/1/2013')
insert into pace_master..tax_rates values (21, 2, 1526, '1/1/2007', .385, 'DEMO', '3/1/2013', 0, 12, '3/1/2013')
insert into pace_master..tax_rates values (28, 2, 1526, '5/7/2007', .20, 'DEMO', '3/1/2013', 12, 99999, '3/1/2003')
insert into pace_master..tax_rates values (29, 2, 1526, '7/29/2007', .28, 'DEMO', '3/1/2013', 12, 18, '3/1/2003')
insert into pace_master..tax_rates values (30, 2, 1526, '7/29/20077', .20, 'DEMO', '3/1/2013', 18, 99999, '3/1/2013')

The values you are inserting are listed in the following table

Tax Rate Table Column	Values

Tax Rate Table Column	Values
Values	Values
Pinstance	2
field_attribute_id	Make this equal to the field attributes set up in the previous step for the tax rate. You can look up the field attributes using the field browser in General Reporting.
effective_date	The effective date of the new tax rate.
update_source	Update user
update_date	Update date - the create date if you update the tax rate.
user_float1	Start for the range of months in the holding period over which the rate is applicable. For example: 0 for short term 12 for long term
user_float2	End for the range of months in the holding period over which the rate is applicable. For example: 99999 for long term
user_date1	Update date - the update date if you update the tax rate.