Merger deals via share swaps come under taxman’s lens

Under accounting rules, goodwill is an intangible asset and depreciates after a merger or acquisition. It is typically written off within a few years after a transaction, leading to a lower tax outgo for the merged entity. As per current tax laws, cos can claim up to 25% depreciation on goodwill every year. When a co takes depreciation on an asset.

from News-Economic Times https://ift.tt/2v8z4XW