What caused the dramatic tax expense swing in Q4 2024?

The dramatic tax expense swing in Q4 2024 can be attributed to several significant tax-related events and changes in tax policies that affected various sectors and individuals. Here are the key factors contributing to this swing:

1. **Tax Policy Changes in the UK**: The announcement of the Autumn Budget in the UK, with potential tax rises for individuals and businesses, created anticipation and uncertainty, leading to increased tax expenses for businesses and high-net-worth individuals.
2. **Oman's Tax Increase on Multinationals**: Oman introduced a domestic minimum top-up tax (DMTT) of 15% on multinational companies from January 1, 2025, which is a significant increase in taxation for affected companies.
3. **NJ Tax Court Decision on Repatriated Income**: The New Jersey Tax Court's decision to cancel a $2 million tax bill on repatriated income for a couple, where the state does not tax undistributed earnings of foreign companies, led to a reduction in tax expenses for that specific case.
4. **Türkiye's Fuel Tax Hike**: Türkiye increased its fuel tax by 6%, which is a significant increase that can lead to higher tax expenses for individuals and companies affected by this change.
5. **Oman's Tax Increase on Multinationals**: Oman introduced a domestic minimum top-up tax (DMTT) of 15 percent on multinational companies from January 1, according to a royal decree. The tax will apply to multinationals with consolidated annual revenue of OR300 million ($779.2 million), a tax official told the Reuters news agency. Last month, the UAE’s finance ministry said it would increase corporate tax on large multi-national enterprises to 15 percent from January 1, from the current 9 percent of their profits in the Emirates. The UAE’s DMTT will apply to multinational enterprises with consolidated global revenues of €750 million ($793 million) or more in at least two of the four financial years immediately preceding the financial year in which the tax applies. Bahrain said in September that it would also introduce DMTT from January 1, 2025, on large multi-nationals. However, Oman put its plan to introduce personal income tax for high earners on hold following a meeting of the sultanate’s State Council last month. Under the initial draft bill, first introduced in 2022, foreign nationals in Oman who earn over $100,000 would be taxed between 5 and 9 percent from 2026. Omani citizens would be taxed 5 percent on global income exceeding $1 million.

These changes in tax policies and tax court decisions have led to a significant shift in tax expenses for various stakeholders in Q4 2024.