Federico Vincenti and Alessandro Valente of Crowe Valente/Valente Associati GEB Partners analyse the recent ruling that clarifies the most appropriate TP method for determining the arm’s length principle.

With judgment no. 11625 dated 04/05/2023, the Italian Supreme Court reiterated several relevant principles regarding TP. The Italian Supreme Court has identified the incorrectness of the “external comparable uncontrolled price (CUP) method” used by the Revenue Agency for determining the arm’s length transaction and the consequent legitimacy of the “internal CUP method”. This pertains to the interest expenses deducted by an Italian company in relation to a loan granted by a German parent company.

 


Pubblicato su: ITR (International Tax Review) – 17 luglio 2023
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