Italian Supreme Court Rules TP Irregularities Must Be Substantiated with Clear Avoidance Behaviour

Authors: Piergiorgio Valente, Federico Vincenti

In Ruling No. 27296, Italy’s Supreme Court rejected the tax authorities’ appeal against an Italian company’s transfer of goods and services to its German parent.
The Supreme Court ruled that if there is no clear economic advantage for a company, simply proving a transaction is not at arm’s-length is insufficient grounds for an adjustment.


Italy’s Patent Box Regime Should Escape Criticism Because of Alignment with OECD Nexus Approach

Author: Piergiorgio Valente, Davide Bergami, and Sophie Harding

Italy has introduced a patent box regime based on the OECD’s nexus approach, which will grant exemptions for profits derived from certain intangible assets for corporate and regional tax purposes. Italy’s alignment with the OECD should keep the usual patent box-related criticism at bay.


Countering BEPS Through Transfer Pricing Documentation

Published in: European Taxation June 2014

In today’ s globalized economy, transfer pricing plays a key role. Over the years, as multinational corporations expanded their business at the global level, they were able to optimize their supply chain, hence increasing their profits boosting, overall, economic growth. This has, however, also created market distortions, which have increasingly brought transfer pricing and the related policies adopted by multinational businesses to the attention of the tax authorities. 
A fundamental issue in the implementation of transfer pricing regulations is asymmetry between information in the hands of taxpayers and information held by the tax authorities. This divergence makes applying and complying with the arm’ s length principle less straightforward, favouring instead the realization of aggressive tax planning scheme.