Tax Reform Jeopardy

GILTI

100

What is GILTI?

Global Intangible Low-taxed Income (GILTI): a new worldwide minimum tax on the earnings of a US shareholder’s controlled foreign corporations (CFCs)

200

Can you carry forward excess FDII deductions?

No, FDII deductions is a one time deal. If you don't have enough TI to offset your benefits, you lose your excess deductions.

300

If a company's foreign earnings decrease, high level, does that increase/decrease your GILTI tax?

Decrease!

SAB 118

100

What is the purpose of SAB 118?

SAB 118 outlines the approach companies may take if they determine that the necessary information is not available to evaluate, compute, and prepare accounting entries to recognize the effect(s) of the Act by the time the financial statements are required to be filed.

200

True/False: Provisional amounts are adjusted when entities obtain, prepare or analyze additional information about facts and circumstances that existed at the enactment date.

True

300

Name one SAB 118 disclosure a company must present in their FS.

-Qualitative disclosures of the income tax effects of the Act for which the accounting is incomplete

-Disclosures of items reported as provisional amounts

-Disclosures of existing current or deferred tax amounts for which the income tax effects of the Act have not been completed

-The reason that the initial accounting is incomplete

-The additional information that needs to be obtained, prepared or analyzed to complete the accounting requirements under ASC 740

-The nature and amount of measurement period adjustments recognized during the reporting period

-The effect of measurement period adjustments on the effective tax rate

-When the accounting for the income tax effects of the Act have been completed

RATE

100

What is the US corporate tax rate before tax reform?

35%

200

After tax reform, the corporate rate reduce to?

21%

300

Who has the highest leading corporate tax rate in the world?

France, with 33.33%

OTHER

100

What is BEAT?

Base erosion anti-abuse tax: Imposes a base erosion minimum tax amount based on the taxpayer’s modified taxable income for the year, over an amount equal to the pre-credit regular income tax liability reduced by certain tax credits.

200

What is the percentile limit a company can utilize their NOLS against their TI?

Limits utilization to 80 percent of taxable income for losses arising in tax years beginning after December 31, 2017.

300

What is a major component of FDII?

US Taxable Income