The EU Directive n. 2015/849 (the “IV Directive”) on anti money laundering sets forth new provisions requiring financial institutions and professional individuals to verify their customers or clients by identifying the ultimate “beneficial owner” of an entity, legal arrangement or financial transaction; obtaining and conserving information about their customers and the ultimate beneficial owners, as
2016
Italy’s Supreme Court Denies Treaty Benefits to UK Holding Company Under Beneficial Ownership Clause of UK-Italy Treaty
By Marco Rossi on
The Italian Supreme Court with its ruling n. 10792 of May 25, 2016 held that the 5 percent reduced dividend withholding tax provided for under article 10 of UK-Italy Tax Treaty does not apply, when the company that receives the dividends does not prove that it is the "beneficial owner" of the dividend as required…
Italy’s Supreme Courts Rules On Anti Inversion With Denial of Foreign Tax Credit
By Marco Rossi on
The Italian Supreme Court, with its ruling n. 8196 of April 22, 2015 held that a NY corporation, wholly owned by an Italian company, and effectively managed and controlled by its Italian shareholders and directors in Italy, had to be treated as an Italian resident company for Italian tax purposes, and was subject to corporate…
No Gift Tax Upon Gratuitous Transfers of Assets To a Trust
By Marco Rossi on
The Regional Tax Commission of Lombardy Region (an appellate level tax court including the city and province of Milan in Northern Italy) with its ruling n. 2846/2016 issued on May 13, 2016 held that a gratuitous transfer of property to a trust is not subject to the gift tax. The court’s theory is that the…
Application of Tax Treaties To Fiscally Transparent Entities: US-Italy Perspective
By Marco Rossi on
‘Tax Treaties’ ‘US-Italy Tax Treaty’ ‘Fiscally Transparent Entities’…
New Disclosure Rules for Trusts
By Marco Rossi on
On November 25, 2015 we reported on new disclosure rules on trusts, which are part of a bill currently discussed by the Italian Parliament. The bill would implement in Italy the new European Union anti money laundering directive.
We reported further on those rules in the article attached.