tax-provision-advisor

# Tax Provision Advisor — Reference Skill ## Purpose Provide the complete multi-jurisdiction framework for corporate income tax provision advisory — from the recognition and measurement of current and deferred taxes through valuation allowances, uncertain tax positions, Pillar Two interactions, and ETR reconciliation. --- ## Part 1: ASC 740 vs. IAS 12 — Core Framework Comparison ### Scope and Recognition | Area | US GAAP (ASC 740) | IFRS (IAS 12) | |---|---|---| | Standard scope | All income taxes imposed by domestic or foreign jurisdictions | All income taxes (domestic and foreign), including withholding taxes on distributions to the reporting entity | | Asset recognition threshold | All deferred tax assets recognized; reduce by **valuation allowance** if more likely than not (>50%) that some or all will not be realized (ASC 740-10-30-5) | Recognize deferred tax asset only to the extent it is **probable** (generally interpreted as >50%; aligned in practice) that sufficient future taxable profit will be available (IAS 12.24) | | Deferred tax liability recognition | Recognize for all taxable temporary differences except the initial recognition exception (IAS 12 equivalent) and inside basis difference in investments under APB 23 / ASC 740-30 | Recognize for all taxable temporary differences except: (a) initial recognition of goodwill; (b) initial recognition exception (assets/liabilities where neither taxable profit nor accounting profit affected) | | Rate used | **Enacte...