THE REALIZATION PRINCIPLE AND THE FAIR VALUE ASSESSMENT IN CAPITAL REDUCTION FOR RETURN OF ASSETS TO THE PARTNERS OR SHAREHOLDERS

Abstract

This paper intends to address the income taxation in case of capital reduction for return in cost value to the partners or shareholders of assets that had been measured through fair value assessment. In face of this situation we will seek to verify if the taxation of capital gain against the transferor company would be hindered to the legal forecast of income tax, with the realization principle as a standard for identify the taxable income.