The primary aim of the tax provisions is to prevent multinationals from abusing foreign tax credits.
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Donnelley asked for a refund based on carrying back unused research credits and foreign tax credits.
Yet filing tax returns in multiple nations and claiming foreign tax credits is an imperfect process that often results in tax mismatches.
Second, for years prior to 2010, he may have had proportionally insufficient foreign income to use all of his foreign tax credits.
While they may claim foreign tax credits for taxes paid elsewhere, they still end up with high U.S. taxes even if they pay low rates overseas.
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But tax experts say that normally softens when the country the citizen works in has a treaty with the U.S., because certain foreign tax credits may be allowed.
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While there will be a lot of emphasis on Libya, also look for discussions on trade and tariffs, offshore accounts and foreign tax credits for corporations and individuals.
The strategy AIG dreamed up involved trading derivatives with the aim of generating capital losses and foreign tax credits for large corporations, which then used them to try to lower their U.S. tax bills.
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In the case of the home buyer tax credit and the business tax provision, Senate Democrats want to delay until 2018 the ability of U.S.-based companies with operations abroad to take advantage of foreign tax credits.
The foreign tax credits are a sham.
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The company said its consolidated rate reflected lower tax rates on foreign earnings and tax credits for investments that created jobs.
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When you combine that foreign money with tax credits, his company generally covers 75% or more of their budget.
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Whirlpool, the maker of appliances under household names like KitchenAid, Maytag and its eponymous brand, is up nearly 60% over the last 12 months, and at a time when many companies are struggling to find top-line growth, sales were up 5% excluding the impact of foreign exchange and Brazilian tax credits.
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What I think they fear is that since an oft-cited justification for the tariff on imported ethanol is that it prevents foreign ethanol producers from benefiting from domestic tax credits, if the tax credit goes away then so does that cited justification of the tariff.
Specifically, you misrepresent the established policy of the American tax system that allows tax credits for income taxes paid on foreign income.
What to avoid: Investing with a producer who wants to make a movie but has no relationship with distributors, has no foreign sales lined up and hasn't explored tax credits that might exist.
U.S. tax law treats royalty costs as mere deductions, while foreign income taxes count as dollar-for-dollar credits against U.S. income tax.
In an effort to spur development of a domestic renewable fuel industry and wean the U.S. off of foreign oil, the U.S. government introduced tax credits for ethanol usage with the Energy Tax Act of 1978.
Firms may also avoid taxes by allocating a share of their income to foreign sources which, under American rules, generate credits against domestic tax obligations.
Now Congress needs to keep that momentum going by renewing the clean energy tax credits that will lead to more jobs and less dependence on foreign oil.
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And since I know that the other side in Congress have promised they'll never raise taxes as long as they live, this is a good time to keep that promise when it comes to businesses that are putting Americans to work and helping break our dependence on foreign oil. (Applause.) So we should extend these tax credits.
These tax credits are used to offset the U.S. income tax on foreign income.
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