Debt discharge gains: tax neutrality where offset by tax losses

by A&P, Alice Mantovan, Fabrizio Ricci | 16 Apr, 2026 | Publications

The Italian Supreme Court confirms that, pursuant to Article 88(4-ter) of the TUIR, debt discharge gains do not contribute to taxable income where fully offset by tax losses, including carryforwards, within the framework of restructuring agreements under Article...

Transfer of shareholdings under the controlled realisation regime: differentiated share premiums in the presence of “misaligned” tax bases

by A&P, Fabrizio Ricci | 8 Apr, 2026 | Publications

In ruling no. 91/2026, the Agenzia delle Entrate (Italian Revenue Agency) confirms the possibility of applying differentiated share premiums in share-for-share contributions under the controlled realisation regime, where shareholders have non-homogeneous tax bases....

No gift tax exemption where the usufructuary retains voting rights on profit distributions

by A&P, Fabrizio Ricci | 2 Apr, 2026 | Publications

With twin decisions no. 6614/2026 and no. 6616/2026, the Italian Supreme Court denies the inheritance and gift tax exemption in a transaction involving the transfer of bare ownership of the entire share capital of an S.r.l. to the donor’s children, where the...

Cross-border interest and royalties: a substance-over-form approach to withholding tax exemption

by A&P, Fabrizio Ricci | 19 Mar, 2026 | Publications

In case C-828/24, the Court of Justice of the European Union confirms that the withholding tax exemption on cross-border interest and royalties under the Interest and Royalties Directive must be assessed on a substantive rather than procedural basis. Accordingly, the...

VAT deduction for “year-end” invoices: the EU General Court overcomes the prohibition on retroactive allocation

by A&P, Fabrizio Ricci, Valentina Sanchi | 5 Mar, 2026 | No Catgory

The General Court of the European Union holds that the right to deduct VAT must be exercised in the period in which it arises, even if the invoice is received in the following year, provided that it is obtained before the deadline for filing the annual VAT return....