Topics of tax interest linked to the application of IFRS

Abstract

As of 2019, IFRS 16 Leases has been implemented in many companies, and this has resulted in the recognition of an asset right of use and a corresponding depreciation in the Lessee's Statement of Financial Position. One of the questions addressed in this paper is whether this asset should be incorporated as the tax base of the Temporary Tax on Net Assets (ITAN).

In accordance with ITAN regulations, the historical value of the net assets consigned in the Balance Sheet (today the Statement of Financial Position) must be taken as a basis. However, the question remains as to whether the base should take into account an “Accounting Asset” or a “Tax Asset”, without considering the deductions that the rule itself regulates.

We refer to a "Net accounting asset", when it must be based on the assets defined as such in the Conceptual Framework and IFRSs, for example, the application of IFRS 16. In the case of operating leases, it was previously recognized directly in the results and an asset or its effects were not accounted for for these concepts.

Therefore, it will be important for the legislator to establish clear rules for the

application of taxes. In the case of ITAN, it could be given from the line of the Constitutional Court and the patrimonial tax; and in that of the Business Income Tax, when accounting concepts are involved. However, the lack of clarity in the regulations creates contingencies for taxpayers and unnecessary processes.