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Goldman Takes One-Time $5 Billion Hit From New U.S. Tax Law

  • Charge mainly stems from taxation of earnings held abroad
  • Bank also accelerates delivery of stock awards for tax benefit
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Bloomberg’s Christine Harper discusses the impact of the new U.S. tax law on Goldman.(Source: Bloomberg)
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Goldman Sachs Group Inc. said the U.S. tax reform will cut profit this year by about $5 billion, mainly because of a tax targeting earnings held abroad.

About two-thirds of the hit comes from the repatriation tax, while writing down U.S. deferred tax assets also contributed, the company said in a filing on Friday. The bank also accelerated the delivery of previously granted stock awards to many of its top executives to lower its taxable profit subject to this year’s higher rates.