rosbif cuisson 'bleu' wrote:are there any accountants out there who can explain , in SIMPLE terms, why a company will make LESS money when corp tax rates are reduced?
Is it because they write off future tax against interest repayments or something?
carolina-blue wrote:Trump top man
Scatman wrote:carolina-blue wrote:Trump top man :roll:
They're still paying less tax so will be better off
Peter Doherty (AGAIG) wrote:Scatman wrote:carolina-blue wrote:Trump top man
They're still paying less tax so will be better off
The Glazers will be better off, the rags won't. God bless the Glazers.
Scatman wrote:rosbif cuisson 'bleu' wrote:are there any accountants out there who can explain , in SIMPLE terms, why a company will make LESS money when corp tax rates are reduced?
Is it because they write off future tax against interest repayments or something?
They have stressed that it is a non-cash charge, which means it will be to do with something on the balance sheet reducing in value, therefore creating a "loss" for that reduction. As it relates to the tax rate going down, the thing reducing in value is most likely to be something on their balance sheet known as "deferred tax".
The simplest explanation is that they will be getting tax relief in the future for something they have already had an accounting deduction for. What that is I don't know, but they are able to put the value of the tax relief they will receive onto the balance sheet as an asset. Because the tax rate has fallen, the asset (the amount of relief they will receive) is worth less to them.
Dipstick wrote:So, to summarize, they won't be paying less tax than they weren't paying before.
zuricity wrote:Is 1-0 a big loss ?
Return to The Maine Football forum
Users browsing this forum: Majestic-12 [Bot], Pretty Boy Lee and 145 guests