Goodwill and the Burden of Proof
Goodwill (ágio), amortisation and the administrative tax litigation that decides whether it holds
The thesis
Goodwill is only worth what the evidence supports. The future profitability appraisal is the centrepiece, and it must exist before the transaction, not after the tax assessment
What the study establishes
1
An appraisal produced after the fact carries reduced evidential weight in administrative tax litigation
2
A related-party transaction requires demonstration of an independent business purpose
3
Poorly supported amortisation creates a tax liability with an aggravated penalty
Contents
- What goodwill is
- The future profitability appraisal
- Amortisation
- The litigation
- Related parties
- How to prepare
- The gaps
- The mandate