Substance over form in a Romanian book-tax approach Cover Image

Substance over form in a Romanian book-tax approach
Substance over form in a Romanian book-tax approach

Author(s): Costel Istrate
Subject(s): Economic development, Transformation Period (1990 - 2010), Fiscal Politics / Budgeting, Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: substance over form principle; book-tax connection; lease-back; revenues;

Summary/Abstract: The relationship between accounting and taxation in has experienced a rapid and dramatic evolution since 1990. In 20 years, Romania passed through evolution that required several decades in developed countries. In a very partial analysis of this development we choose to identify tax effects of accounting rule of substance over form. The starting point of our research is the Romanian accounting standards, which list some implications of the substance over form rule. We note that, as expected, the tax rule does not overlap exactly on the accounting rule. In this context, we insist on some cases: lease-back agreements, the recognition of sales of goods. In these developments, we should note that, sometimes, there are different fiscal and accounting solutions, sometimes solutions are identical.

  • Issue Year: 58/2011
  • Issue No: Spec
  • Page Range: 29-39
  • Page Count: 11
  • Language: English