Compass Expects US Tax Rate to Fall to Near 24% From 26.5%
January 22 2018 - 3:00AM
Dow Jones News
By Oliver Griffin
Catering company Compass Group PLC (CPG.LN) said on Monday that
it expects its effective tax rate to fall to 24% from 26.5% due to
the new U.S. tax law.
The decrease in tax will take effect in the year ending Sept.
30, 2018, with the group's cash tax rate expected to be between 19%
and 22%, the company said.
Compass said the new law will also require the company to
revalue the net deferred tax asset recognized on its U.S. balance
sheet before the year end, but said it did not expect this to have
a material affect.
The new tax law was approved by President Donald Trump in
December. The change in legislation brings benefits for U.S.
companies, including a drop in headline corporate tax rates.
Foreign companies could be in line to benefit, but the reworked
U.S. tax code could negatively affect non-American firms.
Certain aspects of the new law may be subject to clarification
and could change the extent to which Compass is affected by the new
tax legislation, the company said.
Compass said there is still uncertainty around the interaction
between the new federal tax legislation and tax legislation at the
state level, which could also have an impact.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
January 22, 2018 02:45 ET (07:45 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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