Italy issued circular 58/E with guidance on transfer pricing documentation for multinational companies. The tax administration clarified that failure to file the transfer pricing documentation notice may be considered as a factor to select taxpayer that will be subject to audit
Italian Taxation of Companies and Businesses
Italian Tax Court Rules Against Bank on Tax Abusive Transactions
By Marco Rossi on
In a post on December 3, 2010 we reported on a recent ruling issued by the Italian tax court of Emilia Romagna against an Italian banking group in respect of a series of structured finance transactions aimed at obtaining abusive tax benefits (mainly, foreign tax credits under applicable tax treaties).
Based on a copy of…
Italian Tax Court Rules Against Bank on Tax Abusive Transactions
By Marco Rossi on
Italian tax court ruled against Italian bank on tax abusive transactions involving use of derivative contracts to generate tax credits and double dips. Italian tax administration wishes to rely on the ruling to resolve similar dispute with other banks. The total amount of income that can be recaptured is around three billion with an additional tax in excess of one billion plus interest and penalties. Additional comments on the ruling will follow on our blog…
Italy Enacted Rules on Trasfer Pricing Documentation
By Marco Rossi on
Italy issued ruling implementing transfer pricing documentation requirements. Italian transfer pricing documentation framework largely mirrors the EU transfer pricing documentation of conduct and OECD Guidelines. Strict deadlines apply to transfer pricing documentation for 2010 and prior years. Compliance with new transfer pricing documentation requirements allows protection from penalties.…
Italy Removed Malta and Cyprus from Black List
By Marco Rossi on
Italy removed Cyprus and Malta from black list for purposes of CFC rules and Italian rules on tax residency of individuals.…
MQR&A advised Landi Renzo on its acquisition of Baytech Corporation
By Marco Rossi on
Landi Renzo acquires Baytech, MQR&A acts as legal counsel on the transaction…
New Law Requires Additional Disclosure of Abusive Transactions
By Marco Rossi on
Italy reinforces its anti abuse rules by requiring separate monthly or quarterly disclosure of transaction with foreign enterprises organized in black listed jurisdictions. Deduction of costs and expenses arising from those transactions is denied unless taxpayer proves legitimate business purpose beyond tax saving.…
Italy’s Government to Approve New Rules on Transfer Pricing Documentation, Anti Tax Abuse
By Marco Rossi on
A decree presented to the Italian Council of Ministers today will introduce new provisions on contemporaneous documentation for transfer pricing purposes and a new black list with a duty to disclose any transaction carried out in or with any black listed countries to the tax administration. Also, the minimum threshold for the duty to report cross border transfers of money will be reduced to euro 5,000.…
Italy’s Tax Administration Announces More Controls on Nonresidents’ Tax Refunds
By Marco Rossi on
Italy’s tax administration announced stricter controls on tax refund applications filed on behalf of nonresident persons, and sent a notice to various banks acting as intermediaries in which it requested more information in order to avoid abuse and treaty shopping. As a result, banks may be compelled to identify and disclose information about clients and final beneficiaries of the refund.…
Italy’s Tax Administration Published Report on Italian International Tax Ruling (APA)
By Marco Rossi on
Italy’s tax administration published its report on Italian international tax ruling showing 52 applications and 19 agreements signed in the first five years of the program, half of which by foreign multinational enterprises.…