AI International Tax Validation Agent

How Cassidy automates using AI

Step 1: Trigger on transaction data sync

The Workflow activates when period-end data flows in from your ERP, AP/AR, or intercompany billing systems—automatically normalizing currencies, calendars, and chart of accounts across entities.

Step 2: Map entities and classify transactions

Cassidy builds your legal entity map and catalogues intragroup flows—tangible goods, services, financial transactions, and intangibles—tagging each with counterparty, payment nature, and treaty article mapping.

Step 3: Run functional analysis and method selection

The Agent performs FAR and DEMPE analysis, characterizes tested parties (LRD, contract manufacturer, routine service provider), and selects the appropriate transfer pricing method per OECD guidelines.

Step 4: Execute economic testing and benchmarking

Cassidy computes PLIs against your benchmarking library, applies interquartile ranges and working capital adjustments, and flags transactions outside arm's-length ranges for review.

Step 5: Validate treaty entitlement and withholding rates

The Workflow determines payee residency, validates beneficial ownership and LOB/PPT compliance, cross-references CoRs on file, and calculates applicable withholding rates across jurisdictions.

Step 6: Manage W-8/W-9 documentation

Cassidy validates form completeness, checks FATCA status and GIIN where required, monitors expiration dates and change-in-circumstances triggers, and routes renewal requests to the right teams.

Step 7: Generate audit-ready documentation

The Agent assembles Master Files, Local Files, CbCR data packs, treaty eligibility files, and withholding reconciliations—all with full data lineage, approval logs, and version control.

Step 8: Route exceptions with Human-in-the-Loop

Out-of-range results, missing CoRs, or expiring W-8s surface in a review queue where tax directors approve adjustments, request re-papering, or override with documented rationale before final output.