Income taxation and accounting: conceptual tools for comparing European systems

• Author(s): Aguiar, Nina
• Date: 2010
• Persistent ID: http://hdl.handle.net/10198/1874
• Origin: Biblioteca Digital do IPB
• Subject(s): Taxable income; Commercial accounts; Formal conformity; Legal accounting choices; Reverse dependence; Spanish system; Italian system; German system; French system; Portuguese system
• Document Type: Article
• Language: English

Description

The different issues that can be identified in addressing the relationship between income taxation and accounting. Substantive and formal aspects of this relationship. The concept of a formal conformity relationship as meaning that sound legal choices made in commercial accounts are preclusive for tax purposes. The formal conformity relationship as a normative concept. How a formal conformity can be defined in a normative sense. The structural elements of the norm setting out a formal conformity. An application of the normative definition of formal conformity to the German, Spanish, Italian, French and Portuguese systems. Differences in the legal formulae used in these systems and an analysis of the meaning of these differences. The “reverse dependence” between tax accounting and commercial accounting. The recent development concerning “reverse dependence” in the studied five systems.