Intuit Inc. (Nasdaq: INTU) is reviewing the latest corporate tax reform
legislation and working through the impact to the company financials in
fiscal 2018 and beyond.
A number of factors determine the impact of the new tax laws to the
company’s GAAP and long-term structural non-GAAP tax rates. Because
Intuit’s fiscal 2018 year started in August 2017, it will be subject to
IRS rules relating to transitional tax rates in fiscal 2018. Under tax
law (Internal Revenue Code Section 15), if the tax rate changes during a
taxable year, the tax rate for the full year is calculated using the
prior and new tax rates on a proportional basis using the number of days
under each tax rate.
“Tax reform results in fewer corporate deductions. As a result, beyond
the transitional year in fiscal 2018 we expect our GAAP and long-term
structural non-GAAP rate could be closer to or higher than the new
statutory rate,” said Neil Williams, Intuit’s executive vice president
and chief financial officer.
Intuit plans to incorporate the impact of the new tax rates to guidance
when the company reports fiscal second-quarter earnings in February.
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