On 30 May 2018, the Italian Tax Authorities issued the implementation of the new Italian rules provided for in Article 31-quater, paragraph 1, letter c, of the Presidential Decree no. 600/1973. In particular, the Italian Tax Authorities set out the implementation rules for the procedure to be started in order to obtain a tax adjustment from the taxable corporate income in Italy, in case of a tax issue definitively assessed by a foreign Country in accordance with the arm’s le...

The Ministry of Economy and Finance, together with the Revenue Agency and the Financial Police, have opened a public consultation on transfer pricing, on the implementation of the provisions of Article 110, paragraph 7 of the TUIR and of article 31-quater of the Decree n. 600 of 1973. The project will focus on the following documents: - Scheme of the ministerial decree referred to paragraph 7 of article 110 of the TUIR - Scheme of the measure provided for in article 31-quater of the D.P.R. n....

Studio Tributario Tognolo organized a seminar to celebrate 15 years from its foundation: POST BEPS ERA: implementation, opportunities and critical issues The event focused on the state of implementation of the Actions taken by OECD and G20 to contrast the BEPS, in a renewed international context/scenario. Eminent speakers contributed to the discussion:  Alessandro Denaro, representing the European Commission point of view, illustrated on the role of the tax regimes adopted by the States an...

CBCR and appropriate use of information The OECD's Inclusive Framework on BEPS has updated the existing guidance on the implementation of CbC Reporting that now addresses the following issues: the definition of revenues; the treatment of MNE groups with a short accounting period; and the treatment of the amount of income tax accrued and income tax paid. OECD has also realized a new guidance on the meaning of "appropriate use" of the information contained in CbC Reports, the conseq...

The first two days of 71st IFA (International Fiscal Association) Congress in Rio, ending in few hours, have been focusing on the BEPS working progresses and on the future of Transfer Pricing. The outlined international scenario is getting more complex and uncertain due to the fact that 71 countries subscribed the MLI and, consequently, each bilateral agreement by adopting different implementation alternatives and many objections. Either the countries will be able to better harmonize further the...

It is necessary to clarify the correct implications deriving from the modification of paragraph 7 of article 110 of the Italian Corporate Income Tax Act (CITA) after having read several confused comments. The adoption of the arms’ length principle (instead of the fair market value) is only a formal change. On the contrary, the introduction of article 31-bis of DPR 600, which provides the rule in case of a reduction of the Italian taxable income, represents a substantial change. The results of s...

For the first time the number of existing bilateral APA with the US permit Italy to be included in the Report on APMA Program (Advance Pricing and Mutual Agreement Program). The relationship between Italy and the US are closer and closer, at least for the respective competent tax authorities. After the signature of the first bilateral APA in 2015 and the first MAP in the first quarter 2017, Italy now joins the club of countries with which the US has the highest number of procedures in place, ...