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...

Source-state taxation of loss-making non-resident taxpayers

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

The Advocate General’s Opinion in Case C-241/25 confirms the Court of Justice of the European Union’s case law holding that a definitive withholding tax on dividends paid to loss-making non-resident companies is incompatible with the free movement of capital where the...

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...

Interim financial statements and adequate organisational structures: the systemic impact of the new OIC 30

by A&P, Francesco Carlo Vancini, Fabrizio Ricci | 20 Jun, 2026 | Publications

A contribution published in Bilancio, vigilanza e controlli no. 6/2026 examines the role of interim financial statements prepared under the new OIC 30 within the framework of adequate organisational, administrative and accounting structures. In addition to updating...

Registration tax on shareholder loans referred to in a demerger deed

by A&P, Fabrizio Ricci | 18 Jun, 2026 | Publications

Italian Supreme Court order no. 17920/2026 confirms that a shareholder loan referred to in a demerger deed is subject to proportional registration tax. The ruling reiterates that the requirement concerning the identity of the parties must be interpreted broadly and...

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...