A recent U.S. Supreme Court ruling invalidating International Emergency Economic Powers Act (IEEPA) tariffs has opened the door for companies to claim billions of dollars in refunds, but the process will be complex. A refund system went live on April 20, and as companies prepare to file claims, PwC’s Chris Desmond unpacked potential tax and transfer pricing consequences.
While a large refund is welcome news for any company’s finance department, it’s also a tax event, Desmond explained. That’s because a refund results in “a reduction in the cost of goods sold,” which in turn increases a company’s taxable income. Companies need to have a plan to account for this, Desmond detailed in a recent PwC podcast and a conversation with Checkpoint.
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