I have a company that has structured acquisitions primarily as asset purchases, and as such can amortize goodwill and intangibles over 15 years for cash tax purposes. Because of this the company pays a ~15% cash tax rate instead of a 25.5% effective tax rate.
The company has also built up a large DTL balance over time, as the cash taxes are lower than book taxes. However, since goodwill and indefinite life intangibles can't be amortized, only impaired for book purposes, would this DTL ever unwind? It doesn't seem like there would be a situation where the cash taxes are higher than the book taxes, unlike accelerated depreciation.
Any insight on this would be really appreciated.
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