Note 15 - Income Taxes

6 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

15

– INCOME TAXES

The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income on a periodic basis as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions.

The Tax Cuts and Jobs Act was signed into law on

December

22nd,

2017

and makes numerous changes to the Internal Revenue Code. Among other changes, the Act reduces the US corporate income tax rate to

21%

effective

January 1, 2018.

Because the Act became effective mid-way through the Company

’s tax year, the Company will have a US statutory income tax rate of

27.7%

for the fiscal

2018,

and will have a

21%

US statutory income tax rate for fiscal years thereafter. During the quarter ended

December 31, 2017,

the Company re-valued the deferred tax balances because of the change in US tax rate resulting in a

one

-time deferred tax expense of

$4,676,578.

The Company revised its full year projected effective tax rate to incorporate the fiscal

2018

statutory rate of

27.7%.

The Company completed its accounting for the income tax effects of the Act during the quarter.

	Three Months Ended						Six Months Ended
	December 31						December 31
	2017			2016			2017			2016
Reconciliation to effective tax rate:
Provision for income taxes at the anticipated annual tax rate		28.9	%		30.4	%		28.9	%		30.8	%
Enactment of tax law changes		111.2			--			(22.2	)		--
Uncertain tax positions		(4.8	)		(0.6	)		0.5			(0.8	)
Difference between deferred and current tax rate related to the impairment of goodwill		--			--			12.1			--
Other		--			--			--			(1.8	)
Tax impact related to share based compensation		0.3			(0.5	)		(0.4	)		(0.6	)
Effective tax rate		135.6	%		29.3	%		18.9	%		27.6	%