TAXABLE REVENUE AND DEBT RELIEF IN JUDICIAL REORGANIZATION

Abstract

This study seeks to show the tax impacts of the concept of taxable revenue on companies involved in a judicial reorganization scenario: both debtor companies (in recovery) and creditor companies. Based on the analysis of two requirements for the configuration of taxable revenue, which point to the need for financial inflow that reveals an effective ability to pay in order to be characterized as taxable revenue, the study will show not only that the debt relief cannot be considered as taxable revenue from the perspective of debtor companies, but also that the debt relief (even if partial) allows creditor companies to recover any taxes that may have been eventually paid on amounts that were not actually received.