Due Diligence Batch Process

The Due diligence process for pre existing account will be through batch process and the criteria for executing the process will be based on the Tax Compliance type, for instance, Common Reporting Standard, Source Entity ID, Tax Jurisdiction (if any country code is mentioned then the selected country code else all the country code maintained) and date.

Following is the sequence batch processes to be followed for pre existing individual and entity accounts:

Due Diligence Batch
Diminimis Batch
Diminimis Yearly Batch

Due Diligence Batch

The due diligence process will scan all accounts opened on/before the effective date for the jurisdiction selected based on the tax compliance type. Once the system identifies indicia for the respective reportable jurisdiction, UH with Indicia is updated as Yes and Compliance Status as Reportable.

For instance, the due diligence batch process will identify accounts opened on/before the execution date and identify indicia for the jurisdiction selected, else All jurisdiction maintained as part of Tax compliance setup will be applicable.

If indicia is found for the jurisdictions, then the system updates the UH with Indicia as Yes and Compliance Status as Reportable.

Due Diligence is a one-time process for a jurisdiction and this is operationally controlled process (there will be no system check if the process is executed multiple times in the system for the same input criteria).

If the batch is re- executed for a jurisdiction, then system will display an override message as The batch is already executed for the jurisdiction selected, do you wish to continue.

The system will identify the accounts with Indicia Status as Yes for the jurisdiction scanned and the Compliance Status will be set to Reportable.

For instance, if indicia is found for Germany then the Tax jurisdiction will be Germany, with Indicia Status as Yes and Compliance Status as Reportable.

Before due diligence process if the UH is amended, then the system will trigger indicia check for such accounts while saving the amendment. Such account will be picked by due diligence batch but the batch will not make any change to such accounts as indicia are already identified for the account. If there are new indicia (single or multiple) identified for a new jurisdiction/s then a new record/s will be inserted.

If you classify such accounts through the Tax Compliance Classification Maintenance Detail for a jurisdiction or set of jurisdiction before the batch execution then there will be no changes made to such accounts. If there are new indicia (single or multiple) identified for a new jurisdiction/s then a new record/s will be inserted.

If a new reportable country is added, then due diligence process will identify indicia for the new jurisdiction and insert a new row for the jurisdiction for which the indicia is identified.

Diminimis Batch

The Diminimis batch process scan all accounts with Indicia Status set to Yes and Batch execution date (application date) should be greater than or equal to Diligence Date. The system will check the individual and corporate account limit will be checked maintained at Tax compliance setup.

For high value accounts, the system will mark Account value as High and Compliance status as Reportable. For low value accounts, the system will mark Account value as Low, and compliance status as Non Reportable. The Diminimis Yearly Check will be set to Yes.

Note:

This is applicable only for low value accounts.

The system will scan all accounts with indicia status as Yes for the reportable jurisdiction/s. Based on the due diligence date at Tax rule maintenance, this process checks for the account value with indicia set to Yes based on the date input. The date input parameter is operationally controlled.

The batch process will fetch output based on due diligence date, Indicia set to Yes and the individual and entity account value.

If the process date ≠ or < Due diligence date then the system will display an error message as Batch process date to be = or > due diligence date.

This process to be executed post the due diligence process which is again operationally controlled and there will be no system check on the sequence of execution.

If the batch is re-executed, then the system will display an override message as The batch is already executed for the jurisdiction selected, do you wish to continue.

The system will mark the accounts as high value if no limits are maintained. The account with indicia as yes and value greater than the defined value for the individual/corporate will continue to remain reportable until you make any changes at tax compliance classification maintenance or if there is any change in circumstance that trigger change in indicia, for instance, change in address, etc., before classification.

The input criteria to execute the DIMINIMIS batch when a new reportable country is added (no change on batch sequence) and this process will not make any change to the account value which is already identified as part of the earlier DIMINIMIS process. This will only change the compliance status.

Diminimis Yearly Batch

The Diminimis Yearly batch scans for account with Diminimus Yearly status set to Yes. For the accounts identified with high value, the system will set Indicia to Yes, Compliance Status to Reportable, Account value as High and Diminimus Yearly field will be unchecked.

The system will re-scan the accounts marked with Diminimus Yearly check for any change in account value (high /low) and accordingly will be marked Reportable with value as High, else the Diminimus Yearly check will continue with no change on Account value. If the account becomes High, then the yearly check is removed.

This process should be executed post the Diminimis batch which is operationally controlled and there will be no system check on the sequence of execution.

For the accounts where the value is less than the value for individual and corporate, then Diminimus Yearly check will continue and next time the Diminimus Yearly batch is processed, the system will pick these accounts for processing.

The business logic sequence to run the process is as follows:

Execute Due diligence process
Diminimis Check
Diminimis Yearly

If you post the account marked with Diminimis Yearly as Yes and post that the account is classified and if you re-execute the Diminimis Yearly batch, the batch will remove the Diminimis Yearly check and make changes to the account value. Any user classified values will be overridden by the batch.

There will be no change if a new reportable country is added for DIMINIMIS Yearly process.

Validations

The system classifies the Unit holder as Indicia and is marked as reportable and the account value is High as identified by system. The Tax Compliance sub screen in UTDUH screen is updated with the indicia details and Tax jurisdiction details.

If you classify the account as non reportable at Tax Compliance Document Classification maintenance, then the over ridden details are updated back at UH level in the Tax Compliance sub screen in UTDUH screen.

The accounts which are identified with no indicia details through the Due Diligence batch undergoes modification then amendment of such Unit holder will trigger indicia. If indicia is found, then while saving, the details are updated for the UH, provided the UH is not classified through UTDCOMCL.

Batch process will always take precedence over user classified compliance status and not indicia status.

1.22.2 Due Diligence Batch Process