Introduction to Capital Gains Tax API

The tax lot of a particular transaction holds various details which are used to calculate the portfolio’s capital gain when the tax lot is sold. The amount calculated for gain or loss is based on the market price and the cost base method. When the method is FIFO (First In First Out), the first tax lot is selected to be sold first until it is fully redeemed.

The Capital Gains Tax (CGT) API development sends the details of the realised gains when the sell transaction takes place, it sends the unrealised gains details when there is a price change and it will also send the tax lot parcel history. This information can then be used for reporting by the bank. The transaction sequencing is required in certain cases, where certain types of transactions (such as buy) need to be sequenced earlier for capital gain tax calculation purposes. Where multiple transactions take place during a day for the same portfolio and security, it is now possible to define the sequence in which the transactions will be considered for capital gain calculation purposes.

The API's are created using the DFE framework which will extract an excel file containing the required details.

CGT API Reconciliation and Recoverability

This functionality allows users to generate three capital gain reports for: unrealized gain or loss, realized gain or loss and parcel history or tax lots history.

The existing Capital Gain Taxes (CGT) API extracts consider the parcels that have undergone a change on the last 2 years (YTD).

Click here to understand the terms and abbreviations used in this functionality.