sentences:  If, in the example above, Carpet Ltd had £10,000 of expenses of the Germany operation which Germany disallowed as not allocable to German income under German concepts, the German tax would increase to £40,700 while the UK FTC limitation would remain £33,000.This would increase worldwide taxes by the German tax on the disallowed expenses, to a total of £337,300.Assume a German 100% subsidiary of a US company has earned $1,000 of pre-tax income and paid $380 of German taxes over its history.