SAO PAULO: Brazil’s BM&FBovespa SA stock exchange has been fined nearly 2 billion reais ($641 million) by the federal revenue service for booking goodwill amortisation in 2010 and 2011 related to a 2008 merger, according to a filing.
The fine involves 1.45bn reais for income taxes and 523.79m reais for a tax related to social security. The fines already include 75 per cent interest, the filing said on Thursday.
The revenue service is questioning accounting relating to the 2008 merger of the Bovespa and BM&F exchanges. It had already fined the exchange for allegedly incorrectly reducing its tax payments with goodwill amortizations in 2008 and 2009.
BM&FBovespa said it believes the amortizations were correct and would continue to amortize goodwill for tax purposes.
