Offset of Tax Losses on the Extinction of the Legal Entity

Abstract

This paper aims to analyze the theme involving the offset of tax losses on the extinction of the legal entity and the application of the interperiodic percentual limitation for cases, considering that there is no possibility of compensation subsequent to the deferral provided for by law. At first, it is proposed to analyze the historical evolution of the institute of the offset of tax losses until the present systematic, as well as the criticisms made about the constitutionality of the institute. Subsequently, the jurisprudential treatment given to the offsetting of tax losses and the incorrect transportation made by the administrative jurisprudence of the Supreme Court’s understanding for cases of extinction of the legal entity are analyzed. Finally, it is proposed the correct interpretation for the offset of tax losses and the inapplicability of the interperiodic limitation in cases of extinction of the legal entity.