The Italian Supreme Court addresses the requirements for the application of the participation exemption under Article 87 of the TUIR, with particular reference to the classification of the shareholding as a financial fixed asset in the first financial statements closed during the holding period. The ruling confirms that the Italian Revenue Agency may challenge accounting classifications where they are deemed abusive under Article 37-bis of Presidential Decree no. 600/1973, applicable ratione temporis, by assessing the actual economic purpose of the investment.
Published in La Circolare Tributaria no. 21/2026 by Euroconference.
