Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘APB 23’

US Tax Act: Foreign earnings

As a further update to the US Tax Act, SEC has provided a 1-year window to provide a reasonable estimate with continual true-ups for a 1-year period to finalize the complex tax accounting effects.  Note that APB 23 is still alive, which has prompted several questions on its application against the background of the deemed repatriation transition tax.

The Act will significantly change earnings disclosures in the near future and the US debt market where debt may be more expensive due to interest limitations.

EY’s update provides details and relevant links for reference.

http://www.ey.com/Publication/vwLUAssets/Report_on_recent_US_international_tax_developments_-_29_December_2017/$FILE/2017G_07177-171Gbl_Report%20on%20recent%20US%20international%20tax%20developments%20-%2029%20December%202017.pdf

US tax reform: Tax accounting impact

As the time for US seems to tick ever closer, EY’s Global Tax Alert highlights the tax accounting implications that would take effect on the “enactment date.”

Key items for consideration:

  • Tax attributes re: one-time repatriation/taxation of foreign earnings
  • Capital expensing impact
  • State tax impact, dependent on if they automatically follow federal tax law
  • APB 23, how will this be affected?

Although such items are hypothetical at the moment, some items may require additional planning to have the data available for the requisite disclosures.  Thus, the time for planning and consideration is the present.

http://www.ey.com/Publication/vwLUAssets/US_Administration_releases_Joint_Statement_on_Reform_-_Income_Tax_accounting_considerations_related_to_potential_future_US_tax_legislation_and_steps_companies_can_take_now_to_prepare/$FILE/2017G_04560-172Gbl_US%20joint%20statement%20on%20tax%20reform.pdf

%d bloggers like this: