Income Taxes

6 Months Ended

Mar. 31, 2021

The calculation of the effective tax rate is as follows (in thousands):


	Three months ended March 31,						Six months ended March 31,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(1,171)		$	9,555		$	(1,430)		$	12,888

Income tax provision (benefit)	(946)			2,134			(841)			2,692

Net income (loss)	$	(225)		$	7,421		$	(589)		$	10,196

Effective tax rate	81		%	22		%	59		%	21		%

Our income tax provision (benefit) reflects an effective tax rate on pre-tax income (loss) of 81% for the second quarter of Fiscal 2021 compared to 22% for the second quarter of Fiscal 2020. For the three and six months ended March 31, 2021, the income tax benefit largely resulted from the relative amounts of income/loss recognized in various tax jurisdictions, the utilization of net operating loss carryforwards in Canada that have been fully reserved with a valuation allowance, and the estimated Research and Development Tax Credit (R&D Tax Credit).

The effective tax rate for the three and six months ended March 31, 2020 was favorably impacted by the R&D Tax Credit as well as the projected utilization of net operating loss carryforwards in Canada that were fully reserved with a valuation allowance. These favorable impacts were offset by the valuation allowance recorded against our UK deferred tax assets as a discrete item during the second quarter of Fiscal 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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