Abstract
The relationship between taxable income and accounting income can be managed using one of the following models. The “single track” model, according to which accounting income acts also as taxable income. The “double track” model, according to which taxable income is calculated independently of accounting income. The “derivation” model, according to which accounting income constitutes a starting point for the measurement of taxable income. Both accounting rules and tax rules are interested in measuring the financial performance of companies. Their purposes do not entirely match, though, discouraging the use of the “single track” model. However, the determination of taxable income is seldom totally independent from accounting rules. A direct or indirect link with these latter rules is in many cases clearly recognizable even under the “double track” model. It follows that, although the “double track” model and the “derivation” model, which is the most common, imply different processes to calculate taxable income, the difference in their outcomes may be immaterial.