International Tax Planning: The Role of IFRS in Cost Reduction and Tax Optimization
International Tax Planning: The Role of IFRS in Cost Reduction and Tax Optimization
DOI:
https://doi.org/10.51473/rcmos.v2i2.2022.1289Keywords:
International tax planning; IFRS; CPC; US GAAP; deferred taxes; BEPS; IAS 12; IAS 21.Abstract
International tax planning constitutes a strategic dimension for companies operating across multiple jurisdictions, as it enables cost reduction, optimization of financial flows and legal compliance in heterogeneous and dynamic regulatory environments. International Financial Reporting Standards (IFRS) play a central role in this process by providing harmonized principles for revenue recognition, measurement of assets and liabilities, foreign currency translation and accounting for deferred taxes, creating an informational “lingua franca” that, when combined with strong governance and adequate transparency, mitigates risks of asymmetry and undesirable tax reclassification (IASB, 2018; CPC 32, 2014; Hanlon & Heitzman, 2010). This article compares, from an applied perspective, Brazil and the United States, highlighting how the adoption of IFRS in Brazil (via CPC) and the permanence of US GAAP in the US condition decisions on corporate structure, transfer pricing, intangible asset location and use of financial instruments, against the backdrop of the international agenda to combat base erosion and profit shifting (OECD, 2015; Devereux & Vella, 2018). It also discusses legal, ethical and sustainable optimization strategies, as well as guidelines for SMEs to adapt their practices to the global reality, strengthening competitiveness without engaging in abusive tax planning.
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Copyright (c) 2022 Jaqueline Costa Borges (Autor)
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