Alliance enables organizations to easily integrate W-8 validation in their vendor compliance workflows to ensure Foreign Account Tax Compliance Act (FATCA) regulations are satisfied.
San Jose, CA and Boston, MA – October 22, 2013 – Lavante Inc., the leading provider of SaaS-based supplier management and profit recovery solutions, and Compliance Technologies International, LLP (CTI), the leader in cutting-edge global tax withholding and information return reporting technology, consulting, and outsourcing services, today announced an alliance that will enable corporations to be compliant with the newest federal rules pertaining to foreign suppliers.
The Foreign Account Tax Compliance Act (FATCA) dramatically changes tax withholding, tax reporting, and customer management globally. The IRS will now require that U.S. companies pro-actively obtain validated information from foreign suppliers or deduct a 30% withholding tax on payments made to their suppliers. A payor who fails to deduct and remit FATCA withholding when required will be liable for 100% of amount not withheld and subject to interest and penalties. The requirement to implement new account onboarding procedures officially begins July 1, 2014.
Lavante and CTI will help corporations ensure strict FATCA compliance from suppliers using Lavante SIM™, supplier management software that collects and stores all supplier information required for compliance, and CTI’s Digital W-8™, electronic validation software that ensures the correct W-8 is being submitted and that it has been filled out properly. New suppliers added to Lavante SIM™ by the corporation will be automatically evaluated for W-8 requirements and pertinent suppliers will be transferred to CTI’s Digital W-8™ to complete the additional steps. When the W-8 is completed and validated via IRS-approved processes, the resulting digitally-signed document will be uploaded back into Lavante SIM™ and the corporation notified.
“The majority of companies we surveyed are not prepared or even familiar with FATCA”, said Sam Klepper, CEO and President of Lavante. “Our partnership with CTI enables peace of mind for corporations by automating and verifying FATCA compliance.”
“We are excited to bring our expertise in FATCA, especially related to Forms W-8 and W-9, required tax withholding and IRS reporting to help mitigate risk for Lavante’s customer base”, said Cyrus Daftary, Executive Director of CTI. “The combination of our W-8 and W-9 capabilities and Lavante’s overall compliance management system means that our customers can have a truly seamless supplier on-boarding workflow.”
Lavante is the leader in SaaS (software-as a-service) supplier management solutions, including supplier information management and recovery audit applications. Fortune 1000 companies rely on Lavante to reduce the time and cost spent managing suppliers, drive ongoing compliance with regulations and automatically create an enterprise-wide single source-of-truth for supplier data that is constantly updated. Headquartered in San Jose, California, Lavante is privately held and was founded in 2001. For more information, please visit http://www.lavante.com/
CTI’s software and services have been used in multi-national corporations and eight of the ten largest financial institutions in the world since 1998. CTI has a strong team of highly specialized and experienced international and domestic tax and software professionals, including lawyers, accountants, and software engineers and operations experts. CTI’s team is a leader in cutting-edge global tax technology; consulting and outsourcing services specializing in information return reporting and tax withholding. Years of practice have contributed to CTI’s long standing and solid relationships with worldwide financial institutions, multi-national corporations, tax authorities and governments. For more information, see www.cticompliance.com.