Nélio Weiss, PwC		Philippe Jeffrey, PwC

Two recent decisions of the Administrative Court of Federal Tax Appeals (CARF), a rather technical court, ruled against the argument of simulation, raised by the tax authorities, on merger and acquisition transactions that may generate amortisable goodwill for tax purposes in Brazil. The decisions gave a bit of legal and juridical certainty in relation to M&A transactions that are adequately structured.

Although the text of the decisions has not yet been published in its entirety, its seems to generally state that when the goodwill is effectively paid by the Brazilian acquirer, the sale...