jueves, 16 de abril de 2015

Financial reporting implications of new UK diverted profits tax

On 26 March 2015, the UK enacted a new taxing regime known as the diverted profits tax (DPT).  The new regime levies a tax on 'diverted' profits generated on or after 1 April 2015. Substantive enactment occurred on 25 March 2015.

We anticipate that in most circumstances DPT would be considered a tax based on income for accounting purposes.  As such, it would generally be subject to Accounting Standards Codification (ASC) 740, Income Taxes under US GAAP and International Accounting Standard (IAS) 12, Income Taxes under IFRS.

Organisations that may be subject to DPT will need to determine the implications of this new tax for the financial statement period that includes the date of enactment (i.e., 26 March 2015) for US GAAP or substantive enactment (i.e., 25 March 2015) for IFRS. Organisations should evaluate several key considerations based upon their individual facts and circumstances. Care should be taken to ensure that financial reporting controls and procedures are designed effectively to address the requirements of this new tax.

Source & more info: PwC

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