Introducing Longview Tax
Tax Provision calculates your company’s global tax provision, effective tax rate, and deferred taxes for tax provisioning purposes. Since Tax Provision uses the same technological platform as your corporate performance management solution, the tax reporting process is directly integrated into the corporate close process. As one solution, consolidated pre-tax income can be reported by legal entity to accurately calculate consolidated income tax provision and deferred taxes.
When corporate accounting finalizes the period end close and all necessary amounts, such as permanent and temporary differences, tax rates, factors, and foreign exchange rates, have been entered in the system, Tax Provision automatically calculates the current and deferred income tax provisions by legal entity and by jurisdiction. From the provision calculation, Tax Provision produces a draft income tax disclosure complete with supporting schedules. This detail supports the required disclosures in the income tax disclosure, including:
• a breakout of pre-tax income between foreign and domestic entities
• a breakout of the consolidated tax provision between national current and deferred, and foreign current and deferred taxes
• a reconciliation of the company’s statutory tax rate and its consolidated effective tax rate
• the make up of net deferred tax assets, liabilities, and valuation allowance (where applicable)