Italian Supreme Court with judgment 1372 of January 21, 2011 confirmed a merger leveraged buyout transaction is not abusive in itself and can be respected for tax purposes. As a result, the acquisition company’s interest expenses deductions used to offset the income of the target were allowed.
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EU Outbound Merger Not Eligible For Tax-Free Treatment if No Permanent Establishment in Italy After the Merger
Italian tax administration rules that EU merger does qualify for tax free treatment under the EU merger directive if no permanent establishment in Italy exists after the merger…
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ECJ Ruled That Restriction to Tax-Free Treatment of Cross-Border Transfer of Shares is Illegal
By Marco Rossi on
Posted in ECJ Case Law
The European Court of Justice with its decision in case C-285/07 held that the double carryover basis requirement imposed under German law to accord tax free treatment to the shareholders of the target corporation in a EU cross-border transfer of shares violates the EU mergers directive and EC law.
Continue Reading ECJ Ruled That Restriction to Tax-Free Treatment of Cross-Border Transfer of Shares is Illegal