Home / Business / Citi could face $ 20 billion for one time only if GOP tax plan becomes law, says CFO

Citi could face $ 20 billion for one time only if GOP tax plan becomes law, says CFO



Citigroup would make an initial impact of $ 20 billion on the Republican Party's tax bill if it became law, the company's CFO said during a presentation on Wednesday.

9659003] A deferred tax asset is actually a benefit for a company, which allows it to claim tax relief in the following years, assets for a tax rate of 35 percent, if the rate falls to the goal of 20 percent. percent of the GOP, the assets are worth less for Citi, and you have to pay the difference.

Much has been written about the benefits to businesses of the tax bill, including the lower tax rate of 20 percent, but ss ha been understood about the consequences as companies are forced to change the way they have done their tax planning.

"If we look again from what we understand on that tax bill," Gerspach said of the Senate version, "our best estimate would be in the year the invoice is signed, we would probably have an initial impact of $ 20 billion. "

Citi shares fell 1.4 percent on Wednesday and traded unchanged in the afternoon.


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