Resumen de Value creation, corporate income taxation and tax evasion – an overview

Sandra Cristina Capa Farragola Santos Capitão, Candido J. Peres Moreira, Catarina Carvalho Peres Terrinca, João Manuel Afonso Geraldes

• Objective: Globally present the status of the main Portuguese corporate income taxes, as well as a general and theoretical overview of their aggregation, in terms of the effective tax burden. The informal economy and tax evasion problem will also be exposed, as a global approach to its implications, measures to combat and the relationship with the evolution of the tax burden.

    Method: was made a brief approach to the Laffer Curve at the Corporate Income Tax level, Municipal Surcharge and effective tax payment, contextualizing “Pagamento por Conta” and Additional “Pagamento por Conta” and of the state of the art of the parallel economy and tax evasion, regarding existing measures for prevention and combat.

    Results and Discussion: The central point in the current determination of the tax base is the assumption that the creation of value is, therefore, income corresponding to the accounting result after adjustments. However, this does not consider the company's financial effort of effectively generating this result. It is therefore important to discuss more than new adjustments that may be necessary or changes to the rates’ usage with differential installments, an effective change in the tax base, replacing its current calculation, by determination via added value.

    Research Implications: The hypothetical change in the corporate income taxation tax base, witch for the time being is the generated result, after being subject to some corrections, to effectively tax the business creation of value instead.

    Originality/Value: Regardless of the maintenance of penalties for less correct behavior the application of the tax calculation on the value created would an equitable encourage taxation, making the creation of value effectively subject to tax and not the simply difference in income and corrected expenses, bringing into the determination of the tax base the cost of generating the result, thus, considering the whole company.