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Indivior expecting significant impact from US tax reform
Indivior announced on Thursday that it expects its future US after-tax income to be positively impacted by the recently-legislated changes to US corporate taxes, that were effective from 1 January.
The FTSE 250 company said the ultimate impact of the change in the US corporate income tax rate remained subject to a number of "complex provisions" contained within the new legislation, which it was currently reviewing with its advisors.
However, based on a current reading of the new law - which lowers the US federal corporate income tax rate from 35% to 21% - along with the company's existing tax position, Indivior said it expected a 'high teens' effective tax rate for 2018, and for the foreseeable future.
"The lowering of the US corporate income tax rate to 21% also requires revaluation of Indivior's US deferred tax assets and liabilities," the board said in its statement.
"The current estimated impact of this will be a one-off non-cash charge to the company's after-tax income of approximately $15m that will impact Indivior's fourth quarter 2017 results."