Creative Accounting In The Economic-Financial System – Conventions For The Avoidance Of Double Taxation

In time, the legislation changes in the accounting domain, taxation areas and not only led to the appearance of some representation methods of the business information that reflect more or less transparent the actual fact of a business entity. Mos of the times is impacted the result of the financial year of a company, this being subject to taxation. In the endeavor of some entities to diminish their profit to avoid tax by masking results a significant role also has the existence of the conventions for the avoidance of double taxation, they being a refuge for companies’ profits. The idea to comprehend in detail the reality transposed in the financial standings of an entity is a subject of interest both for the business entity itself and for its partners and the institutions they come into contact with, this is an idea from which we started from in making this paper with the purpose of making known the various aspects of using creative accounting. At the same time, we want to point out the fact that the limits of creative accounting are almost inexistent and that the legislation on global level facilitates in certain conditions the hiding of actual legality of the companies.