BM&F Bovespa, the Brazilian securities and derivatives exchange, has issued a statement strenuously denying any misuse of a tax loophole during the 2008 merger of BM&F and Bovespa.
On June 1, Brazilian daily Folha de São Paulo reported that the Brazilian tax office, Receita Federal do Brasil, was investigating the world’s third largest exchange group for alleged abuse of a loophole which allows merging companies to take tax deductions and boost goodwill provisions on their books. Receita Federal do Brasil was not available for...