Why is IFRS Not a Good Starting Point for a Tax Base?

32 Pages Posted: 30 May 2019

See all articles by Antonio Lopo Martinez

Antonio Lopo Martinez

University of Coimbra; University of Salamanca

Date Written: May 5, 2019


This article discusses whether IAS/IFRS should be used as a starting point in the context of the Common Corporate Tax Base in the European Union. Non-European countries may also have an interest in the analysis on the use of IFRS to compute the corporate tax base, as well. After a background discussion on the application of IAS/IFRS as the start point for a tax base, some principles of tax bases are analyzed. Additionally, the disadvantages and advantages of using IAS/IFRS as the start point are presented. In the end, the creation of an independent tax accounting framework is recommended, which should have as the primary purpose taxation, and taxpayers and governments as the users of the information. In this new arena, the IAS/IFRS should be a valuable toolbox of concepts that can be adjusted for a tax perspective.

Keywords: Common Corporate Tax Base, IFRS, Tax Principles, Tax Accounting

JEL Classification: K34, M41

Suggested Citation

Martinez, Antonio Lopo and Martinez, Antonio Lopo, Why is IFRS Not a Good Starting Point for a Tax Base? (May 5, 2019). Available at SSRN: https://ssrn.com/abstract=3383061 or http://dx.doi.org/10.2139/ssrn.3383061

Antonio Lopo Martinez (Contact Author)

University of Coimbra ( email )

Pátio das Escolas

University of Salamanca ( email )

Campus Miguel de Unamuno
Salamanca, Salamanca 23007

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