Back to the amortization of financial goodwill and its adaptation to European Union Law

Abstract

Financial goodwill is a peculiar element both in its configuration and in its accounting and tax treatment. Spanish internal regulations have differentiated the treatment of this concept depending on whether this goodwill was generated in acquisitions of shares of resident or non-resident entities. In relation to the latter, article 12.5 of the repealed Consolidated Text of the Corporate Tax Law, admitted the tax deduction of the amortization of financial goodwill. This provision has been the subject of a complex procedure by the European Commission, which has led to various rulings by the jurisdictional bodies of the European Union, relating both to the nature of prohibited State aid of this tax deduction, and to the scope of the Decisions issued. by the Commission for these purposes.