FIGURE 7 A Minimum Benchmark for Corporate Tax Disclosure in Annual Financial Reports
1 Pretax profits as reported to shareholders
U.S. profits
Foreign profits
2 Income taxes on those profits —
On U.S. profits
On foreign profits
(a) Income taxes paid or payable on return for year, including effects of carrybacks
to U.S. govt
to state govts
to foreign govts
to U.S. govt
to state govts
(b) Income taxes deferred (not yet paid and not payable on return for year)
by U.S. govt
by state govts
by foreign govts
by U.S. govt
by state govts
3 Details on Income taxes paid and not paid
On U.S. profits
On foreign profits
(a) List of all significant items reducing or increasing taxable income compared to profits reported above (with dollar amounts)
U.S. federal
state
foreign govts
U.S. federal
U.S. state
(b) Taxable income (profits less items listed above)
U.S. federal
state
foreign govts
U.S. federal
U.S. state
(c) Tax paid or payable on return for year before credits, including the effects of carrybacks
U.S. federal
state
foreign govts
U.S. federal
U.S. state
(d) Credits taken on return for taxable year (listing details and dollar amounts) including the effects of carrybacks
U.S. federal
state
foreign govts
U.S. federal
U.S. state
(e) Tax after credits (should equal line 2(a) above)
U.S. federal
state
foreign govts
U.S. federal
U.S. state
Notes: "Significant" means any item that reduces or increases taxable income by more than 3 percent, or in the case of credits reduces tax before credits by more than 1 percent. Items not listed separately because they are not "significant" should be reported in the aggregate. Tax items that under current reporting are not listed in the tax footnote, for example, tax benefits from stock options, should be included in the tax figures reported under the rules outlined above.