PowerTax

A Complete Tax Depreciation and Deferred Tax System Focused on Asset-Intensive Businesses

VALUE DELIVERED

A Powerful Tax Calculation Engine...

PowerTax is a tax depreciation and deferred tax system designed specifically for the

Immediate Tax Savings:

demanding requirements of asset-intensive companies. PowerTax automates all asset-

Improve Tax Depreciation and Depletion

calculations using multiple methods,
conventions, and rates

related tax functionality including book reconciliation, tax depreciation, depletion, repairs,

Realize Bonus Depreciation deductions

by leveraging base rates and processes
Recognize tax repair expenses with
standard identification
Reduced Audit Risk:
Limit the possibility of errors with
industry tested and audited functionality
Purge manual processes and
spreadsheets from the tax process with
automation
Automate and standardize reporting
for 10k, regulatory, and other reporting
requirements

and asset-related deferred taxes. PowerTax also acts as a data gathering and preparation
system, collecting and processing book transactions and M-Items using built-in routines.
PowerTax integrates directly with PowerPlans Asset Accounting and Budgeting systems to
deliver a complete asset optimization and cost management solution for asset-intensive
companies.

...With Monthly Provision Processing

PowerTax Provision processing, executed during the monthly closing cycle, provides the
monthly accrual entries for current and deferred taxes, as well as liability computations
for all taxing jurisdictions. It determines monthly tax liability across multiple companies,
consolidated business segments, and tax jurisdictions. Provision calculations include
deferred taxes associated with OCI, NOLs, and credit carry-forwards. Provision also handles
apportionments, calculates effective tax rates by lines of business, business units, and
consolidation levels, and creates all monthly general ledger entries.

Lower Labor Costs:

Reduce tax prep and filing time with
integrated, purpose-built solution
Expedite monthly close thanks to
automation of Provision processing
Simplify tax forecasting by leveraging
flexible base product features

...and Support for Tax Compliance, Planning and

Forecasting.
PowerTax provides tools to facilitate tax impact studies and longer term analysis. The
system can be used to segregate assets for business segment analysis. In addition,
PowerTax includes features to allow forecasting of all tax depreciation, gain/loss, and
deferred taxes. Forecasts can span any number of user-defined years, and each forecast
documents the tax base (inheriting ending balances, conventions, and rates) and key
assumptions (like additions and retirements). Multiple versions of forecasts can be saved
for comparison purposes.

Powertax key features

Tax Depreciation

PowerTax accommodates numerous depreciation methods, conventions, and rates, including first year,
disposition year, gain and salvage requirements, and bonus depreciation. Older vintages using class
life, facts and circumstances, ADR rules, or the remaining life plan are also supported. Alternative
depreciation systems for AMT, ACE depreciation, E & P depreciation, state and Canadian requirements
are maintained, including separate basis and gain/loss calculations. Depletion logic and tracking is
also included.

Deferred Tax

Provision provides the monthly computations, entries, and support for all current and deferred federal
and state income tax entries, including deferred taxes associated with OCI, NOLs, and credit carryforwards. The module determines monthly tax liability across multiple companies, consolidated
business segments, and tax jurisdictions. Provision handles apportionments, calculates effective tax
rates by lines of business and consolidation levels, and creates monthly general ledger entries, trueups, footnotes and disclosures.

Book Depreciation

PowerTax functions as the sub-ledger for all property-related deferred taxes. All calculations related
to full normalization, partial normalization, and flow through of method, life, cost of removal, and basis
differences are handled. PowerTax meets complex regulatory calculation and reporting requirements
including ARAM methodology and calculates FAS109 Regulatory Asset, Liability, and Gross-Up
computations. The reversal of timing differences and deferred taxes are carefully maintained and end
effects closely monitored.

Tax Forecasting

PowerTax forecasts use a regular tax case as the base, inheriting ending balances, conventions, and
rates. Addition and retirement assumptions, depreciation, and deferred taxes are included in the
forecast, and all forecast assumptions are documented within the case.

Tax Repairs

The PowerPlan Asset Accounting Solution automatically identifies and processes tax repairs, which
are units of work/property that can be expensed for tax but must be capitalized for book (with
the corresponding book retirement not recognized for tax). PowerPlan Asset Accounting includes
automated processes to 1) identify which work orders/property units qualify for repair status, and
2) process the book and tax impacts of the repairs. The results automatically populate PowerTax to
streamline the entire tax repairs process.

200 Galleria Parkway

Atlanta, Georgia 30339

For more information

To learn how PowerPlan solutions can help reduce compliance risk, improve
cash flow, and provide effective operational cost management, contact your
sales representative today at +1 770.859.0402 or visit www.powerplan.com.

tel: +1 770.859.0402
www.PowerPlan.com
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functionality is subject to change without notice.