IFRS as a Tax Base in a Small Open Economy
IFRS as a Tax Base in a Small Open Economy

Author(s): Jan Molina, David Procházka
Subject(s): Micro-Economics, Economic policy, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: IFRS; tax base; small open economy; comparative advantages;
Summary/Abstract: The IFRS adoption has improved the quality of accounting information significantly. However, huge costs are incurred by all subjects involved. The process has significant consequences for tax systems, too. State authorities are solving how to ensure the control over tax duty fulfilment under a new financial reporting system. As corporate income tax systems in code law countries are tightly bound up with accounting regulation, governments are forced to decide whether and in which way companies preparing financial statements under the IFRS shall reflect the IFRS based figures in their income tax returns.

• Details
• Contents