Internal tax management in Bricknode is used to apply transaction-based taxes. For example, when a customer receives a dividend the securities firm that operates BFS should deduct the correct tax and reserve that amount to release the amount to the relevant tax agency.
The actual tax reporting is being done by an add-on application called Tax Manager Application so the internal configurations in BFS for tax are only there to manage transaction-based tax transfers.
Bricknode will also manage taxes between various source and destination countries. For example, if a UK-based securities firm is operating BFS and a UK-based end customer receives a dividend from a US-based company the Cross-Border Tax Rates settings should be used to manage the source tax.
