Autore: Piergiorgio Valente

Italian tax rules regarding disputes for transfer pricing violations are based on article 110(7) of the Italian Income Tax Code (Testo Unico delle imposte sul reddito, or TUIR). The rules substantially regulate the taxable base, which is also true for other antiavoidance provisions, such as the rules governing controlled foreign corporations. The rules place the burden on the taxpayer to prove that the transfer pricing method employed was on an arm’s-length basis. When analyzing the legal aspects of the Italian rule, the application of article 110(7) of the TUIR should be verified for the following aspects:
– subjective application basis;
– relationships criteria; and
– contents of the conditio juris (condition of law).