Page 107 - International Taxation IRS Training Guides
P. 107
Effective Tax Rate
Rate Reconciliation is found in US GAAP
The Tax
statements in the Income Tax Expense
financial
footnote.
The Tax
Rate Reconciliation reflects worldwide (“WW”)
consolidated book earnings
this will not necessarily represent US taxable income
• Note that
tax return of the multinational enterprise (“MNE”).
on the US
example, uncertain tax benefits associated with transfer pricing
• For
(IRC 482) might not be reflected in the financial
adjustments
tax return.
statements, but could be reflected on the US
Financial Book tax expense is not the same as the US
tax return tax expense.
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