PEX capital gains: the ETR test for pre-ATAD tax years

by A&P, Matteo Aicardi | 9 Jul, 2026 | Publications

Decision no. 1434/2026 of the Milan First-Instance Tax Court addresses the low-tax jurisdiction requirement for the participation exemption in relation to a capital gain realised upon the liquidation of a foreign subsidiary. The court held that the criteria set out in...

Interest expense, business purpose and economic reasonableness: the Italian Supreme Court requires a quantitative and comparative assessment by the tax authority

by A&P, Matteo Aicardi | 25 Jun, 2026 | Publications

Italian Supreme Court decision no. 19140/2026 clarifies that the deductibility of interest expense for IRES purposes does not require a direct link to specific taxable revenues, but rather a connection with the business activity as a whole. Economic unreasonableness...

Failure to file an income tax return: foreign tax credit available where a double taxation treaty applies

by A&P, Matteo Aicardi | 11 Jun, 2026 | Publications

Italian Supreme Court order no. 16134/2026 clarifies that, where a double taxation treaty requires Italy to eliminate double taxation, the foreign tax credit cannot be denied solely because the taxpayer failed to file an income tax return or to report the...

The elimination of tax-suspended reserves in corporate reorganisations

by A&P, Matteo Aicardi, Fabrizio Ricci | 8 Jun, 2026 | Publications

A contribution published in Rivista delle Operazioni Straordinarie no. 5/2026 examines the treatment of tax-suspended reserves in corporate reorganisations, with particular focus on potential abuse-of-law issues. Failure to reconstitute the reserve may be regarded as...

Disproportionate profit distributions: strengths and weaknesses of Italian Revenue Agency Ruling No. 90/2026

by A&P, Matteo Aicardi, Fabrizio Ricci | 28 May, 2026 | Publications

A contribution published in IPSOA Quotidiano examines Italian Revenue Agency Ruling No. 90/2026, which for the first time addresses the tax treatment of profit distributions made on a basis that is disproportionate to shareholders’ equity interests. According to...