This website uses cookies to ensure you have the best experience. Learn more

Transaction Services Tax Pwc Essay

2113 words - 9 pages

Transaction Services
• •

TS Insights
List bullet List bullet Sub bullet

evaluation of the other two sources of taxable income ― Vol. 3

Heading 2

Financial reporting in an uncertain economy
A closer look at income tax valuation allowances October 2009

Additional text goes here. Heading 3

Additional text goes here. Notwithstanding early signs that the global recession may be waning, the uncertain economic future continues to constrict corporate America. As companies continue to incur losses, focus has heightened on income tax valuation allowance assessments by companies and their auditors, as well as the Securities and Exchange Commission staff, through the issuance of ...view middle of the document...

e., deferred tax liabilities) Future taxable income exclusive of reversing temporary differences and carryforwards Tax-planning strategies that would, if necessary, be implemented

evaluation of the other two sources of taxable income ― projections of future taxable income and the identification and assessment of available tax planning strategies ― requires significant judgment. This paper explores these sources of taxable income, as well as other considerations relevant to valuation allowance assessments in today's turbulent economic environment.

Weighing available evidence
In the valuation allowance world, not all available evidence related to deferred tax asset realizability is created equal. ASC 740 requires the weighing of positive and negative evidence. For example, consider a company that experiences current operating losses that are attributable to today's economic environment. This presents negative evidence indicating deferred tax assets may not be realized. However, when forecasting its future taxable income, the company projects a return to profitability in 2010 ― an indication of positive evidence. In addition, prior to the economic downturn, the company has historically been profitable.

The existence of taxable income in carryback years and future reversals of existing taxable temporary differences are generally matters of fact. However, the

PricewaterhouseCoopers 1

Prospect name Proposal title/theme

In this case, the operating losses that have most recently occurred would likely carry more weight in the analysis of the need for a valuation allowance than either the historic profitability or the projection of future taxable income. What has recently occurred is generally more verifiable than what may occur in the future, or what has occurred in the more distant past.

Tax planning strategies
Tax planning strategies may also provide a source of taxable income when deciding whether a valuation allowance is necessary. ASC 740 gives characteristics of tax planning strategies. Specifically, tax planning strategies are: • Actions that an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused Actions that would result in realization of deferred tax assets Actions considered both "prudent" and "feasible"

Cumulative losses in recent years
In ASC 740, cumulative losses in recent years are cited as an example of significant negative evidence that is difficult to overcome. While not defined by ASC 740, practice has generally been to consider the most recent three years when assessing cumulative losses. Positive evidence of sufficient quantity and quality would be needed to overcome this significant negative evidence and conclude that a valuation allowance is not warranted. As with all elements of available evidence, a cumulative loss is simply one data point — it is not a "bright line" test that is in and of itself determinative of the...

Other Papers Like Transaction Services Tax - Pwc

Cost Reduction Essay

4991 words - 20 pages shareholders • Strong foundation, continuous improvement PricewaterhouseCoopers 20 Intelligent Cost Reduction PwC qualifications to help PwC qualifications to help • Overall program assessment and support – Leverage of our global Financial Services team to assess of the program end-to-end and support in terms of program management and execution. • Specific experience in the front office – Business financial analysis, divestiture

Scrutiny on intra-group outbound payments - Chinese tax authorities in action from local to state level

1650 words - 7 pages early precautions and prepare for potential challenges from the Chinese tax authorities and to optimise their intra-group charge arrangements. Please refer to the take away points in our previous News PwC News Flash — China Tax and Business Advisory Let’s talk For a deeper discussion of how this issue might affect your business, please contact a member of PwC’s China Tax and Business Service: Peter Ng +86 (21) 2323 1828

Goods and Service Tax

1071 words - 5 pages the manufacturing cost. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies. India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction. All goods and services, barring a few exceptions, will be brought into the GST

Financing Strategy

904 words - 4 pages that are expected to be resourced. * A five-pronged strategy, combining of a financing memorandum document that includes financial projections and other relevant forward-looking statements, together with clear descriptions of the forecasted transaction. Construction Loan Since the recent global financial crisis, financing has remained to be constricted for most construction projects. As a result, the company has realized the need to be

Health Care Ceo Payment

589 words - 3 pages compensation, relevant information includes, but is not limited to, compensation levels paid by similarly situated organizations, both taxable and tax-exempt, for functionally comparable positions; the availability of similar services in the geographic area of the applicable tax-exempt organization; current compensation surveys compiled by independent firms; and actual written offers from similar institutions competing for the services of the

Tax Acct

1743 words - 7 pages % Income recognition: * Income must be realized and earned, 3 conditions: * Economic benefit of the transaction * Conclusion of the transaction * Income from transaction must not be tax-exempt income * Cash receipts and disbursement method * Constructive receipt: right to control, receipt of property or services will trigger income recognition Interest: * From banks, savings and loans, or credit

Tax Avoidance And Tax Evasion In Bangladesh

5263 words - 22 pages economic growth, the tax system must be so designed as to raise the rates of savings and investments. · The government not only raises revenue through taxation but it also imposes restriction on the use of certain goods and services. · In order to protect the local industries from the uneven competition government may provide tax incentives for poor local industries. · The tax revenue can be used by the government to ensure the economic

High Frequency Trading

2558 words - 11 pages /pwc-investor-resourceinstitute/publications/assets/pwc-high-frequency-trading-dark-pools.pdf - Giancarlo Bruno, Abel Lee, etc. The Future of Financial Services (2015). Retrieved October 9, 2015, from - US Economy News (2015). The 2010 ‘Flash Crash’: How it Unfolded. Retrieved October 10, 2015, - Zhang, X.F. (2010). High-frequency trading, stock volatility and price discovery (Working paper). Retrieved October 8, 2015, from

Analysis of Biological Assets Valuation Method with Fair Value Accounting and Historical Cost Accounting in Plantation Subsector of Indonesian Agricultural Industry in the Period of 2007-2012

3556 words - 15 pages plantation subsector of Indonesian agricultural industry, in the period of 2007-2012, tries to evaluate the relevance of historical cost towards the fair value of biological assets. It also tries to look for empirical evidence on the differences in calculations on biological assets between FVA and HCA toward company’s EBIT, net income, and potential tax liabilities. The research tests 5 companies within the plantation subsector in agricultural industry

Evaluation of R&D Relief and Patent Box Scheme in the Uk and Belgium

3628 words - 15 pages interest deduction, [Internet] Available from:$FILE/NID%202011.pdf [14 Feb 2014] Ernst & Young, (2013) 2013-2014 Worldwide R&D incentives reference guide, [Internet] Available from: [14 Feb 2014] Federal Public Service Finance, (2013) Rate of coporation tax, [Internet

Business Marketing

1488 words - 6 pages comply with tax laws under HMRC control -They ensure that they has been paid in full and correctly types of tax include income tax, VAT, PAYE, Corporation tax, Capital gain tax and other tax. -Taxpayers and their agent have to make appropriate tax payments, true tax status and transaction. -The taxpayers must obey tax regulations and pay a penalty when they have a breach of regulations. Implications of non-compliances Implications of non

Related Essays

Gender Diversity At Pricewaterhousecoopers Essay

3940 words - 16 pages and processes, tax and legal services (PwC, 2013c). As PwC is a franchise company, one cannot say that it has a common mission statement. However, most branches have a similar statement and for the purpose of the authors’ audit, the consulting team will focus on PwC USA. In regards to diversity, the mission of PwC is “Our diversity initiatives and strategies are designed to attract, develop, and advance the most talented individuals regardless of

Positioning And Strategic Essay

893 words - 4 pages arranged for the most outstanding talent and a large amount of money, in order to make PWC become the most important part of the field of electronic commerce." Second, combine. The merger also brings other benefits, and the business scope of consulting, auditing, and tax services is significantly expanded, in part, to a certain extent, which has covered all of the major companies in the United States. Two companies have their own advantages in

Ifrs For Smes Essay

2402 words - 10 pages other comprehensive income) or equity as the transaction or other event that resulted in the tax. In other words, the standard requires a backward-tracing approach, consistent with existing IFRS. US GAAP generally prohibits backward tracing of taxes to other comprehensive income or equity if the taxes are recognized in a period different from the period in which the pre-tax transaction or event was recorded. PwC Observation This is an area where

Financial Accounting Essay

1857 words - 8 pages , 2013). PwC’s was established in Malaysia at year 1990’s (pwc, 2013). Their aim is to deliver value to the clients all the time. It is a firm who provide services like assurance, tax and advisory. PwC is a firm with strong team made up of 2,030 peoples all over Kuala Lumpur, Pulau Pinang, Ipoh, Melaka, Johor Bahru and Labuan. It is a firm who work with the client to identify the corporation goals. Deloitte Touche Tohmatsu Limited is another firm