Repatriating prior year earnings from a foreign subsidiary located in a low-tax country where ASC 740-30 (APB 23) benefits were previously adopted will decrease a corporation's current year effective tax rate.

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Repatriating earnings from a foreign subsidiary where APB 23 benefits were previously adopted would typically increase the current year effective tax rate, as the deferred tax liability for those earnings would need to be recognized.

Repatriating Prior Year Earnings from a Foreign Subsidiary Located in a Low-Tax