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

Alejandro Franco Allen & PabloA. Mahu Martínez

Bulletin for International Taxation2026https://doi.org/10.59403/75vbxmarticle
ABDC B
Weight
0.50

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.

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https://doi.org/https://doi.org/10.59403/75vbxm

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@article{alejandro2026,
  title        = {{The Forestal Aurora Case: Insights from the First Case Application of the Chilean GAAR}},
  author       = {Alejandro Franco Allen & PabloA. Mahu Martínez},
  journal      = {Bulletin for International Taxation},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.59403/75vbxm},
}

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

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.