'Different World' for Banks After Tax Law: EY's Stevens

Financial institutions like banks and insurance companies need to carefully consider changes in the new tax law, especially international provisions, when making business decisions going forward, a tax practitioner said.

“I think banks and other financial institutions are going to have to think very carefully about where they’re earning their income, what kinds of foreign taxes their income is subject to, and therefore, whether they want to earn that income through a foreign subsidiary or—where local law permits—directly by the U.S. parent,” said Matthew A. Stevens, a principal at Ernst & Young LLP.