THE PRINCIPLE OF THE ADVANTAGE OF SUBSTANCE OVER FORM IN THE TRANSACTION OF SUBMITTING A TRADEMARK

Abstract

The article assesses the transaction of contributing a trademark created during business activity to a newly established company in the context of the principle of the advantage of substance over form and applicable tax law provisions. In order to build the value and structure of their assets in the balance sheet and act against the principle of substance over form, enterprises separate and contribute economic resources that do not meet the definition of assets to newly established companies. Literature studies and analysis of legal acts were used to achieve the assumed goal, and a study of a selected real case of a transaction of separating one's own trademark and its contribution to a daughter company in order to improve the property and financial situation was carried out. The analysis of the case study indicates actions against the principle of the advantage of content over form and, thus, the principle of a faithful image. In order to improve the property and financial situation, the company's management board activated a trademark created during its operations by separating it and contributing it to a daughter company and thus falsified the picture of the property and financial situation of the enterprise presented in the reports, exposing their addressees to the consequences of incorrect decisions.