Brazil stock exchange fined $641 mln on 2008 merger accounting
SAO PAULO, April 2 (Reuters) - Brazil's BM&FBovespa SA stock exchange has been fined nearly 2 billion reais ($641 million) by the federal revenue service for booking goodwill amortization in 2010 and 2011 related to a 2008 merger, according to a Thursday filing.
The fine involves 1.45 billion reais for income taxes and 523.79 million reais for a tax related to social security. The fines already include 75 percent interest, the filing said.
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.
($1 = 3.12 reais) (Reporting by Aluisio Alves; Writing by Caroline Stauffer; Editing by Lisa Shumaker)
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