In the Forecast Permanent Diffs page, users can enter differences that will not reverse in the future. Examples include permanently disallowed expenses, certain types of goodwill amortization, and tax-exempt interest. In order to view this page, the page must be selected in Manage User Permissions.
Enter a separate line item for each permanent difference:
1. | Select the Code-Description and then Tag or Class/Sub-Class. |
2. | Select the type of the permanent difference item. It will usually be a P&L adjustment. However, if users are entering an item that does not have any impact on the current tax expense; for example, stock option expense, select E - Equity Adjustment. |
3. | Enter the amount of the permanent difference in local currency. |
4. | Click Add New to create the permanent difference. |
Notes:
• | If a new permanent difference item is required, contact the Corporate Tax Department. |
After a permanent difference item is created, users can edit or delete the item by clicking the appropriate icon.
1. | Click the pencil icon to edit the entry. |
2. | Select Save Changes after making any changes. |
• | Users can attach files to an individual permanent difference item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item. |
• | Users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes. |
• | The impact of individual permanent differences on the tax provision can be viewed on the Forecast Rate report. |
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