Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Measuring a Company's Foreign Tax Credit Position

Measuring a Company's Foreign Tax Credit Position

Office of Tax Analysis, U. S. Department

Paperback

General Reference

ISBN10: 1505382254
ISBN13: 9781505382259
Publisher: Createspace
Published: Jan 1 2015
Pages: 34
Weight: 0.23
Height: 0.07 Width: 8.50 Depth: 11.02
Language: English
A number of authors have tried to discover how the residual U.S. tax on foreign corporate earnings (the U.S. tax after the foreign tax credit) affects business decisions. Some of them inferred the residual tax from data in the company's financial statement, whereas others used the residual tax reported in the company's income tax return. In the present study, we point out problems with both approaches. For instance, we show that in many cases, the two approaches yield different results for the same firm. We then compare the generally accepted measures of the residual tax with a third measure that, at least conceptually, should reliably reveal whether the company anticipates owing a residual tax for the year, after accounting for its ability to carry unused foreign tax credits over to prior or future years. We find that this third measure does not accord well with the commonly used measures of the company's foreign tax credit position. We believe that our results, therefore, draw into question the conclusions of the earlier studies that tried to capture the incentives imparted by the residual U.S. tax.

Also in

General Reference

View All