Income Tax (Provision) Benefit

3 Months Ended

Jun. 30, 2013

Income Tax (Provision) Benefit [Abstract]

Income Tax (Provision) Benefit

8. Income Tax (Provision) Benefit

The income tax provision for the three months ended June 30, 2013 was determined by computing the current and deferred tax provisions for the interim period using the GUC Trust’s statutory tax rate of 39.6% that became effective on April 1, 2013. The GUC Trust’s statutory rate of 35% previously in effect was utilized for the three months ended June 30, 2012. An annual effective tax rate is not determinable because the GUC Trust’s only significant source of income is gains on distributions of New GM Securities, which are not determinable until realized. Certain U.S. federal income tax returns of MLC currently are under audit by the Internal Revenue Service. The outcome of those audits and the effect, if any, it may have on the GUC Trust’s U.S. federal income tax returns or financial statements is indeterminable at this time.

The components of the income tax (provision) benefit in the condensed statements of changes in net assets in liquidation for three months ended June 30, 2013 and 2012 are as follows:

(in thousands)	2013			2012
Current	$	—		$	—
Deferred		(166,170	)		108,583
Total	$	(166,170	)	$	108,583

Deferred taxes in the accompanying condensed statement of net assets in liquidation at June 30, 2013 are comprised of the following components:

Deferred tax assets:
Reserves for expected costs of liquidation	$	18,850
Net operating losses		18,909
Gross deferred tax assets		37,759
Deferred tax liabilities:
Fair value in excess of tax basis of holdings of New GM Securities		(368,774	)
Gross deferred tax liabilities		(368,774	)
Net deferred tax liability	$	(331,015	)

Valuation allowances against deferred tax assets aggregating $49.2 million were provided during the three months ended June 30, 2012 due to uncertainty as to whether the deferred tax assets were realizable. Realization of the deferred tax assets is solely dependent upon the generation of taxable gains upon the distribution or sale of New GM Securities in the future, which is not determinable prior to occurrence.