Negative Corporate tax

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3 comments

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    IMPLAN Support
    Hello Shameem, This means negative profits (negative OPI) for a corporation for that year. While the government is not paying the Industry those 'negative' tax amounts (really the industry is simply not paying taxes that year), the losses do allow the industry to pay fewer taxes the next year (i.e., those negatives will be carried over to the next year). In terms of impact analysis though, we recommend zeroing those values out. We presume you are seeing this for the Direct Tax Impact; however, if that is not the case, please let us know what region you are working with and your data year and Sector(s) that you impacted. Hopefully this helps --Implan Support Staff
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    saleem
    Thank you The region is Delaware data year 2013 and sector 435
  • Avatar
    IMPLAN Support
    Thank you, When we built the Model we do see that Direct Tax impact is negative. This means that for the Industry as a whole there were negative profits (negative OPI) for a corporation for that year. Since these values are not part of the Multiplier Matrix and don't generate any results, you can either: 1. Recalculate the tax impact zeroing the negative Direct Tax impact for corporations out. (Typically the easiest way to do this is to export or copy the Direct, Indirect, and Induced reports to Excel and then sum them after setting the Direct Corporate Tax impact to zero. 2. If you know the Direct tax payments of your firm you can use the same summing procedure above, but set the Corporate tax line to reflect the known taxes. Best regards, IMPLAN Group Staff

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