Questioning the Tax Treatment of Goodwill

Authors

DOI:

https://doi.org/10.11565/gesten.v2i4.49

Abstract

The current tax treatment of Goodwill and Badwill produces tax inequality. In the case of Goodwill, this is explained by the taxpayer's inability to recognize actual losses arising in a merger process until the organization recording them is dissolved or terminates its business activity. In the case of Badwill, it arises from the taxation of profits that may already have been taxed at source. These situations could give taxpayers an incentive to seek ways of avoiding potential internal double taxation, or to recognize, on justified grounds and in the short term, the losses generated in a given company merger process. One alternative for counteracting these effects is, through a legal amendment, to recognize the genuine right to use such losses and to seek a methodology allowing profits already taxed in their organizations of origin to be distinguished.

Downloads

Download data is not yet available.

References

Centro de Conocimientos Tributarios. (2017) Centro de Conocimientos Tributarios. Recuperado de http://www.cctchile.com/.

Código Tributario. (1974). Código Tributario. Santiago. Chile. “Editorial”

Flores, G. y Vergara, G. (2014). Desafíos en Tiempos de Reformas Tributarias: Fundamentos, objetivos y control. Santiago. Chile. Legal Publishing.

Pinto Perry, G. (2006). Fusión de Empresas. Santiago. Chile. LexisNexis.

Ley Nº824. Diario Oficial de la República de Chile. Santiago. Chile. 31 de diciembre de 1974

Ley Nº830. Diario Oficial de la República de Chile. Santiago. Chile. 31 de diciembre de 1974.

Ley N°20.630, Diario Oficial de la República de Chile. Santiago. Chile. 27 de septiembre de 2012.

Ley N°20.780. Diario Oficial de la República de Chile. Santiago. Chile. 29 de septiembre de 2014.

Ley sobre Impuesto a la Renta. Diario Oficial de la República. Santiago. Chile. 08 febrero de 2016.

Servicio de Impuesto Interno. (2014). Circular Nº13. Recuperado de www.ssi.cl.

Servicio de Impuesto Interno. (2014). Circular Nº1. Recuperado de www.sii.cl.

Downloads

Published

2017-12-10

Issue

Section

Opinión de Actualidad

How to Cite

Questioning the Tax Treatment of Goodwill. (2017). GESTIÓN Y TENDENCIAS, 2(4), 4-10. https://doi.org/10.11565/gesten.v2i4.49

Article usage

ViewsTimes this article's page was opened since the journal started recording statistics. One person can visit more than once.
1,693
DownloadsTimes the full text of this article (usually the PDF) was opened or downloaded.
2,489

All time, as recorded by the journal.

Among the top 20% by views · last 2 yearsCompared with all the journal's articles by views in the last 2 years, this one is among the top 20%.

Last 2 years: 487 views, 224 downloads.

Main countries of traffic origin:Countries this article was consulted from, according to the internet connection. They are not necessarily people. United States 32% · China 10% · Singapore 10%

1.47 downloads per view (journal average 0.67).Downloads of the full text for every abstract view of this article, compared with the whole journal.

Explore the journal's metrics

Most read articles by the same author(s)