NEW YORK, March 4, 2019 /PRNewswire/ -- Ernst & Young LLP today announced the launch of the EY Crypto-Asset Accounting and Tax (CAAT) tool, a technology solution that facilitates accounting and tax calculations for cryptocurrency transactions. The US rollout is part of the EY strategy to lead the industry with blockchain-related capabilities and services worldwide.
"EY CAAT exemplifies our commitment to exceptional client service in a changing landscape," said Marna Ricker, EY Americas Vice Chair of Tax Services. "We are excited to offer an innovative technology specifically to address our clients' needs in the crypto-asset space. I appreciate the efforts of the EY Foundry and professionals across our practice who have made this breakthrough."
The pioneering software was developed by integrating recently acquired technology assets and related patents with other EY processes for total functionality. The acquisitions were led by EY Foundry, a corporate venturing unit within EY Tax charged with developing transformational digital businesses.
EY CAAT will be used to serve institutional clients that have crypto-assets on their balance sheets, as well as both institutional and individual clients who trade such assets on a smaller scale. The firm has seen significant increases in the number of clients that hold and trade crypto assets.
EY CAAT has the ability to source transaction-level information from virtually all major exchanges. It consolidates data from multiple sources and allows for the automated production of various reports and dashboards, and preparation of IRS tax returns related to crypto-assets.
"The initial validation we have received from the market has been phenomenal, but it only represents the beginning," said Michael Meisler, partner and EY Global Blockchain Tax leader. "EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients."
As the market evolves and crypto-assets increase in utility, clients across a range of industries, and particularly asset management firms, may benefit from the technology. From a retail client perspective, the product will be leveraged for high net worth individuals served by the EY Private Client Services practice and made available to users of EY TaxChat, a mobile tax preparation service that pairs users with licensed and experienced EY professionals who prepare individual tax returns.
"The world of crypto-assets and cryptocurrency investing continues to evolve. It is the Foundry's mission to stay ahead of the market as best that we can and to launch new digital solutions and digital businesses to help our clients do the same. EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry," said Chirag Patel, EY Foundry Leader.
"I am immensely proud of our team for integrating the technology assets we acquired into EY CAAT and am excited for users of the software to experience firsthand the value that it brings," said Art Claybon, Venture Lead for EY CAAT at the Foundry.
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This news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.