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...

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...

Late-issued certificates and the Parent-Subsidiary exemption: the Italian Supreme Court confirms a substance-over-form approach

by A&P, Matteo Aicardi | 21 May, 2026 | Publications

Italian Supreme Court order no. 13128/2026 clarifies that the late receipt of a certificate issued by the foreign tax authority does not preclude the withholding tax exemption on EU dividends under Article 27-bis of Presidential Decree no. 600/1973, provided that the...

Participation exemption: abusive classification as a financial fixed asset of a shareholding already agreed for sale

by A&P, Fabrizio Ricci | 14 May, 2026 | Publications

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...