New international tax provisions

✍ Scribed by Shirley Dennis-Escoffier

• Publisher: John Wiley and Sons
• Year: 2010
• Tongue: English
• Weight: 52 KB
• Volume: 22
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.20666

✦ Synopsis

On August 10, 2010, President Obama signed into law a package of international tax provisions estimated to generate more than $9 billion in additional tax revenue over ten years to pay for aid to states to prevent teacher layoffs and to fund an increase in Medicaid. These revenue-raising provisions were intended to target U.S. multinational corporations that manipulate the rules on foreign tax credits to avoid U.S. taxes. A few of these provisions took effect the day the president signed them into law, while most affect tax years beginning after December 31, 2010. It is important for multinational corporations to be aware of how these new tax provisions will affect not only their tax returns, but also their financial statements.