A decision of Chilean Court of Appeal of Concepción was recently published involving the application of Chile's general anti-avoidance rule (GAAR) in relation to a reorganization that occurred prior to the GAAR's entry into force. Chile's GAAR entered into force on 30 September 2015.
The reorganization involved the division of a profitable Chilean company (the original company) into two separate companies in 2014, one of which maintained accumulated tax credits and was subsequently acquired…