The Forestal Aurora Case: Insights from the First Case Application of the Chilean GAAR

This article examines the first application of Chile’s General Anti-Avoidance Rule (“GAAR”) in the Forestal Aurora case. The tax authority challenged a cross-border financing structure aimed at benefiting from a reduced 4% withholding tax rate on interest. The courts’ decisions mirror the EU GAAR’s subjective test under ATAD I, particularly regarding intent, artificiality and economic substance, revealing doctrinal inconsistencies in the application of Chile’s GAAR.

Authors

Publication Details

Journal
Bulletin for international taxation
Published
2026-01-21
DOI
https://doi.org/10.59403/75vbxm
Primary Topic
Taxation and Legal Issues
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

The Forestal Aurora Case: Insights from the First Case Application of the Chilean GAAR

Alejandro Franco Allen, PabloA. Mahu Martínez
Bulletin for international taxation
Taxation and Legal Issues
article

The Forestal Aurora Case: Insights from the First Case Application of the Chilean GAAR

Alejandro Franco Allen, PabloA. Mahu Martínez
article en

Abstract

This article examines the first application of Chile’s General Anti-Avoidance Rule (“GAAR”) in the Forestal Aurora case. The tax authority challenged a cross-border financing structure aimed at benefiting from a reduced 4% withholding tax rate on interest. The courts’ decisions mirror the EU GAAR’s subjective test under ATAD I, particularly regarding intent, artificiality and economic substance, revealing doctrinal inconsistencies in the application of Chile’s GAAR.

Bulletin for international taxationVol. 80(2)
Openalex Percentile: Top 81%
Taxation and Legal Issues
DOISourceOpenAlex
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

The Forestal Aurora Case: Insights from the First Case Application of the Chilean GAAR — Alejandro Franco Allen, PabloA. Mahu Martínez · Bulletin for international taxation (2026) | TGRS Research Map | TGRS