In its ruling n. 21614 of October 26, 2016 Italy’s Supreme Court considered the issue of the application of the gift tax upon the transfer of property to a trust. The issue arises under the provisions of Law n. 262 of October 3, 2006, which reinstated the gift tax. Article 2 of Law 262, at
International Taxation
Current Status of Anti Money Laundering Legislation and Practice In Italy
By Marco Rossi on
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…
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…
Application of Tax Treaties To Fiscally Transparent Entities: US-Italy Perspective
By Marco Rossi on
‘Tax Treaties’ ‘US-Italy Tax Treaty’ ‘Fiscally Transparent Entities’…
Amended Return Not Sufficient To Avoid Penalties For Failure To Report Foreign Assets On Form RW
By Marco Rossi on
The Regional Tax Court for the Region Lombardia with ruling n. 3778/67/15 held that the amended income tax return, which an Italian taxpayer may file to integrate a previous incomplete file return after the filing deadline has expired, does not remedy the penalties connected to the failure to file a timely RW form. The information…
Italy’s Tax Residency for Foreign Investors
By Marco Rossi on
Italy’s tax residency for foreign taxpayers buying Italian real estate, and spending significant time in Italy for pleasure or business continues being a very critical and challenging issue. Italy assigns tax residency of individuals based on residence, which means fixed place of living ; domicile, which means main center of interests, or registration on the…
Italy’s Supreme Court Holding That Economic Interests Prevail Over Personal Ties In Determining Italian Tax Residency
By Marco Rossi on
Italy’s Supreme Court’s decision n. 6501 of March 31, 2015, dealing with the case of an Italian citizen who had most of his personal and family connections in Italy but moved to work in another country (Switzerland), where he had most of his economic and financial interests, ruled that the taxpayer’s economic and financial connections…
Overview of Italy’s Tax Reporting Rules
By Marco Rossi on
Italian resident taxpayers are required to report all of their assets held outside of Italy, on form RW of their Italian income tax returns (which include various sections and can be considered the equivalent of the FBAR and other international tax returns that are required to be filed in the United States).
Resident taxpayers subject…
Italian Perspective on Beneficial Ownership
By Marco Rossi on
In recent years the concept of ‘beneficial ownership’ has emerged as a major anti abuse rule applicable in the context of tax treaties and other important areas of international tax law. This article provides an overview of the recent interpretation and applications of the beneficial ownership rule as clarified by the OECD, pursued by tax…