The Effects of the Fair Value Evaluation of Assets and Liabilities in the Calculation of the Gift and Inheritance Tax (ITCMD) Due to São Paulo on Transmission of Companies’ Shares

Authors

  • Elidie Palma Bifano
  • Paulo Coviello Filho

Keywords:

Gift and Inheritance tax, property transfer, equity value, fair value, contributory capacity

Abstract

This paper address the controversy regarding to the harmful effects that the fair value evaluation of assets and liabilities by entities can generate in the calculation of gift and inheritance tax (ITCMD), in the case of transmission of companies’ shares, considering that this method is based on estimates and presumptions, therefore, characterized by its subjectivity and uncertainty, and must not have an impact on the calculation basis of taxes, mainly because it is contrary to the contributory capacity principle. It will be seen that the Brazilian legislation of the income tax determines the neutralization of the effects of applying the fair value, a provision that must also be implemented by the legislation of São Paulo that regulates gift and inheritance tax (ITCMD).

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Published

2019-08-01

How to Cite

Bifano, E. P., & Coviello Filho, P. (2019). The Effects of the Fair Value Evaluation of Assets and Liabilities in the Calculation of the Gift and Inheritance Tax (ITCMD) Due to São Paulo on Transmission of Companies’ Shares. Revista Direito Tributário Atual, (42), 500–518. Retrieved from https://revista.ibdt.org.br/index.php/RDTA/article/view/1480

Issue

No. 42 (2019)

Section

Doutrina Nacional (Not Peer Reviewed)

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

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