I’m looking at the following income statement and see that EBT is negative for 2008 and 2007: http://finance.yahoo.com/q/is?s=MOSY+Income+Statement&annual Given that, why then is income tax expense greater than 0? Why do you have to pay taxes when you didn’t make any money?
I havent looked at what you provided, but is the EBT based on book income or taxable income? Also, in a lot of countries you would have other taxes than just income based (for example, in Mexico the IETU).
go to page 72 of the 10-k here, they walk you from the calculated 35% benefit down to whats in the I/S: http://sec.gov/Archives/edgar/data/890394/000104746910002782/a2197612z10-k.htm basically took valuation allowances against their deferred tax assets - these made the provision and effective tax rate go wonky