Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

v3.22.1
INCOME TAXES
6 Months Ended
Apr. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 17 – INCOME TAXES

 

The Company’s effective tax rate for the three months ended April 30, 2022, and 2021 was (23.9) % and (13.9) % respectively. The decrease in the effective tax rate for the three months ended April 30, 2022, as compared to April 30, 2021, resulted from one of the US companies having a taxable loss for the three months. We have been recording the US tax rate of 21% for the US companies. We have been recording the UK tax rate at 0.0% as we believe our R&D tax credits will offset any tax liability incurred.

 

The Company’s effective tax rate for the six months ended April 30, 2022, and 2021 was 5.6 % and (13.9) % respectively. The increase in the effective tax rate for the six months ended April 30, 2022, as compared to April 30, 2021, resulted from the US companies becoming tax paying entities having used up their net operating loss carryforwards. We have been recording the US tax rate of 21% for the US companies. We have been recording the UK tax rate at 0.0% as we believe our R&D tax credits will offset any tax liability incurred.