Look Through Transactions
The Look Through Transactions screens are used to enter any rent, royalty, interest, or dividend payments and receipts a foreign entity has made or received from a related party.
Rents, royalties, and interest payments are processed without regard to the ownership chain or position within that chain (that is, payments can be made up, down or across the ownership chain). Dividends can only be processed up the ownership chain (that is, payments can only be made to an entity's parents.)
Foreign Entities that make or receive look-through payments should use the special account types related to Intercompany Payments and Receipts. If you don’t use these account types, the system won’t perform look-through calculations.
note
You can enter Look Through Transaction information either manually or by import.
Division or divisional consolidation best practices
To report amounts for the different countries in the divisions, or to have the separate amounts for GILTI and Subpart F by division for a potential future spin-off of a division, in binder
Properties
tab International
:
- In the divisional consolidation, underDivisional Consolidation Data, selectDivisionfor bothSourcing, Apportionment and Tax LevelandIntercompany Transaction Level.
In the 1st division, leave the checkboxes unmarked for both
GILTI Tested Unit
and Subpart F and Residual Unit
(amounts will be combined with the divisional consolidation and elimination for the 5471 amounts). In the other divisions, mark the checkboxes for both GILTI Tested Unit
and Subpart F and Residual Unit
. In the top consolidation in FTC Defaults
under Look Through De Minimis Calculation
, select by Division
.If all divisions are in the same country and GILTI and Subpart F amounts won’t be separated for a potential spin-off, in binder
Properties
tab International
:
- In the divisional consolidation, underDivisional Consolidation Data, selectDivisional Consolidationfor bothSourcing, Apportionment and Tax LevelandIntercompany Transaction Level.
- In all divisions, leave the checkboxes unmarked for bothGILTI Tested UnitandSubpart F and Residual Unit(amounts will be combined with the divisional consolidation, elimination, and other divisions for the 5471 amounts).
- In the top consolidation inFTC DefaultsunderLook Through De Minimis Calculation, selectby Divisional Consolidation.
