Volume 39 (2011) / Issue 6/7
The end of 2010 brought significant accounting changes in Luxembourg, with the introduction on an optional basis of International Financial Reporting Standards (IFRS) for undertakings. While the accounting law has been brought up to speed with European standards, the draft law to adapt the relevant tax provisions accordingly was withdrawn from Parliament and, to date, has not been re-introduced. This article looks at the history of the proposed amendments and also tries to examine what this situation means for businesses. The issues addressed are the potential impact on the taxable basis of accounting under IFRS, classification issues in respect of financial instruments, and, finally, the availability of certain tax advantages.
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