The "true and fair view" concept in business and tax law: the Portuguese and Spanish case studies

Journal article


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Publication Details

Author list: Aldeia, S.
Publisher: Allied Business Academies
Publication year: 2019
Journal: Academy of Accounting and Financial Studies Journal (1096-3685)
Volume number: 23
Issue number: 2
Start page: 1
End page: 11
Number of pages: 11
ISSN: 1096-3685
Languages: English-Great Britain (EN-GB)


The main goal of this paper is to understand how the “true and fair
view” concept was incorporated in the Spanish and Portuguese national
laws, comparing the national legal dispositions and understanding how
this concept was accepted in each of these countries. For this purpose,
the business and tax law of both European countries were investigated.
In Spain, the Commerce Code (Código de Comercio), the Capital Companies
Law (Ley de Sociedades de Capital), the Accounting law (Plan General de
Contabilidad) and the Corporate Income Tax Law (Ley del Impuesto sobre
Sociedades) were studied. In Portugal was made an analysis of the Code
of Commercial Companies (Código das Sociedades Comerciais), the
Securities Code (Código dos Valores Mobiliários), the Accounting law
(Plano Oficial de Contabilidade and Sistema de Normalização
contabilística) and the Corporate Income Tax Law (Código do Imposto
sobre o Rendimento das Pessoas Coletivas). The results show that the
true and fair view concept was incorporated by both national laws,
mainly because as member states of the European Union they were obliged
to integrate it. This integration occurred in both business and tax law.
The business legislation has a general understanding of the concept as
an overriding principle, being the accounting principles simple means to
reach it. In the corporation income tax law, this concept is implicitly
recognized in both laws by inherent acceptance of generally accepted
accounting principles under Articles 10.3 of the Ley del Impuesto sobre
Sociedades and 17.3 of the Código do Imposto sobre o Rendimento das
Pessoas Colectivas.


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Last updated on 2019-10-08 at 00:16