The influence of Tax Reform on Accounting: a descriptive study

Abstract

Currently, there are two law projects in progress in the National Congress that, if approved, represent the implementation of a Tax Reform sought after by at least four presidential terms. If this new proposal comes into effect, many changes will occur in the Brazilian Tax System and accounting professionals as the main actors in this sector may have their practice impacted. This article proposes to analyze the current law proposals and reflect on the possible impacts they may have on accounting practice. To this end, a literature review was carried out focused on the texts of laws aimed at tax reform from 1995 to 2021, as well as books, articles and academic papers on the subject. Based on the analysis of theoretical references, it was concluded that despite the simplification provided for by the creation of a single tax that replaces PIS and COFINS, many changes imposed by legal instruments will depend on the performance of accounting professionals, in particular by revocation of the exemption from Commercial Bookkeeping for Presumed Profit. In this sense, the hypothesis of a real simplification of the National Tributary System still seems somewhat distant, and, therefore, the impacts on accounting seem to point more towards an increase in demand and need for updating than a positive impact of simplification of accounting practices.