Title: The effects of financial accounting on taxable income. Italy
Authors: Rolle, Giovanni # ×
Issue Date: Jun-2011
Publisher: B N A International Inc.
Series Title: Tax Management International Forum vol:32 issue:2 pages:44-46
Abstract: All companies subject to Italian (company) law because they are incorporated under Italian law or because they have in Italy their effective place of management or main business purpose are required to prepare and file with the Registry of Enterprises a yearly financial report under the provisions of the Italian Civil Code implementing the provisions of the EC Fourth Company Directive.
The financial report should be drafted in accordance with Italian GAAP (as set forth in the Civil Code provisions referred to above and the National Accounting Principles adopted by the Italian Accounting Body) or, in certain cases, in accordance with IFRS. Under the derivation principle, income for corporate income tax purposes is determined by adjusting the profit or loss arising from the profit and loss account in accordance with the criteria established by subsequent provisions of the ITC.Italy has made rather wide use of the option provided for in Article 5 of Regulation 1606/2002 (which introduced IFRS in the EU accounting framework) so that publicly traded companies are now required not only to prepare their consolidated accounts in conformity with the international accounting standards (as provided for in Article 4 of Regulation 1606/2002), but also to prepare annual (i.e., separate company) accounts in conformity with the same standards.The article, after a short description of the general framework and the hostorical evolution addresses the new rule laid down in Article 83 of the ITC, under which, for those adopting IFRS, “the criteria for qualification, time allocation and reporting classification” prevail over the criteria established by the general income taxation rules laid down in the subsequent provisions of the Income Tax Code.
ISSN: 0143-7941
Publication status: published
KU Leuven publication type: DI
Appears in Collections:Non-KU Leuven Association publications
× corresponding author
# (joint) last author

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