Italy Publishes Updated 2020 Transfer Pricing Documentation Guidance

On November 23 2020, the Italian Revenue Agency published a provision by which it amended the Italian regulation on transfer pricing documentation, making it more compliant with the OECD Transfer Pricing Guidelines.
The new measures replace those of the provision of September 29 2010 and are applicable from the 2020 tax period. The preparation of transfer pricing documentation remains optional for Italian companies. In the case of the predisposition of suitable documentation, companies can benefit from the so-called penalty protection in case of transfer pricing adjustments by the Italian tax administration.

Published in: ITR - 2 December 2020

Download

Piergiorgio Valente named as Tax Controversy Leader in World Tax’s dedicated Leaders series

Piergiorgio Valente of Valente Associati GEB Partners/ Crowe Valente - Italy named as Tax Controversy Leader in World Tax’s dedicated Leaders series

Tax Controversy Leaders

has recognized Piergiorgio Valente as a highly regarded tax controversy adviser.  

The Tax Controversy Leaders guide identifies the leading individuals working in tax controversy around the world, as selected by their fellow tax professionals. Market leaders chosen by market leaders. This year, the guide covers more jurisdictions, reaches out to more individuals and recognises more practitioners than ever before – from rising stars just making a name for themselves to market leaders with decades of experience behind them.

Any World Tax firm rankings or individual advisor ratings awarded to Valente Associati GEB Partners can be accessed here: https://www.itrworldtax.com/Lawyer/Valente-Associati-GEB-Partners-Crowe-Valente/Piergiorgio-Valente/Profile/2090#profile

For more information about Tax Controversy Leaders, please visit https://www.itrworldtax.com/

Download

Mutual Agreement Procedure Rules Transposed into Italian Law

With Legislative Decree No. 49/2020 published on June 10 2020, the Italian legislator approved the decree implementing EU Directive 2017/1852 on the resolution of disputes in EU tax matters.

By means of this legislative decree, the rules relating to mutual agreement procedures have been transposed into Italian law related to:

• The international conventions to avoid double taxation stipulated with EU member states; and 

• The convention 90/436/EEC of July 23 1990 on the elimination of double taxation in connection with transfer pricing.

Published in: ITR - 28 August 2020

Download

COVID19: The Challenges for International Taxation

Introduction

Except for the unprecedented health crisis, the COVID-19 spread has generated the biggest economic and financial shock of the century across markets and cross-borders. The preventive and reactive mechanisms developed by national governments and international and supranational organizations to respond to the crisis give in turn rise to a plethora of tax questions.
It is critical for businesses to understand how the various measures adopted impact on the tax systems and how these have transformed to react to the shock. As such, they will be able to ensure tax compliance while also taking advantage of any relevant tax incentives. Such exercise is particularly challenging, taking into account the complexity of the measures and the various levels in which they have been/are being developed: international, EU and national.

Published in: Kluwer International Tax Blog - 6 August 2020

Download

Italien: Steuervorbescheid für Neuinvestitionen - Mehr Rechtssicherheit bei Investitionen

Mit Gesetzesdekret Nr. 147/2015 sollen Investitionen in Italien gefördert werden. Dafür erhalten Unternehmen und Einzelpersonen die Möglichkeit, ihre Aktivitäten auf italienischem Staatsgebiet in bewusster Kenntnis des geeigneten Besteuerungsmodells zu planen. Es wurden ein sog. Cooperative Compliance Program und ein Advance Ruling on New Investments (Steuervorbescheid für Neuinvestitionen) eingeführt. Damit soll der Dialog mit dem Steuerpflichtigen verbessert werden und ihm mehr Sicherheit bei der Bestimmung der steuerlichen Belastung im Zusammenhang mit relevanten und dauerhaften ausländischen Investitionen in Italien gegeben werden.

Published in: NWB Datenbank - IWB Nr. 10 - 29 May 2020

Download (In German)

New OECD Guidance on Financial Transactions

On 11 February 2020, the OECD published the “Transfer Pricing Guidance on Financial Transactions” document (hereinafter “Report”). 
The Report, which will constitute the new chapter 10 of the OECD Transfer Pricing Guidelines, provides specific guidelines on how to apply the arm’s length principle for financial transactions. 
The publication of the Report is of greater relevance in view of the period of crisis triggered by Covid-19. 
As such, one of the main impacts for multinational groups concerns liquidity management. 
In order to ensure full operability, companies need to manage their financial resources in the best possible way. This is performed by: 

• taking actions by increasing the management efficiency of the receivable and payable accounts

• the utilisation of public support such as:

  • tax measures (i.e. suspension of tax obligations, suspension of the terms of the activities of collection offices, tax credit) 

  • financial support measures (i.e. wage compensation funds, access to public sector subsidies to businesses)

• taking actions aimed at finding additional resources of private financing.

Published in: Crowe TP Wednesday - 03 June 2020

Download

Assessing Inter-Company Transactions and Accounting Implications during Economic Uncertainty

Inter-company financial transactions

During periods of crisis, the financial sector may experience significant repercussions on transactions. The disruption to normal activity leads to a lack of liquidity and extra limits on external financing, potentially making financial transactions unprofitable.
Hence, in this context, multinational companies are increasingly using centralised treasury techniques in order to optimise and rationalise their financial function.
One of the areas of particular concern to tax authorities is in regard to inter-company financing. In particular, where it relates to an intra-group loan, which is considered to comply with the principles of free competition whenever the interest rate applied is equal to the one that would have been applied between independent parties.

Published in: International Tax Review (ITR) - 1 May 2020

Download

Performing a Comparability Analysis during an Economic Downturn

Since December 2019, countries have witnessed the widespread impact of COVID-19 on economic activity, global value chains and profitability across most industries and geographical areas.
As is the case in all periods of uncertainty, as governments try to tackle the crisis with measures that stimulate economic growth such as tax reliefs and investment incentives, tax authorities have focused to a greater extent on setting transfer pricing (TP) policies in order to verify the reason and the nature of the contraction registered in the financial statements of firms.
Hence, companies undertaking inter-company transactions should adapt their TP models to the current economic and financial conditions, in order to ensure that internal policies reflect the potential reallocation of functions, activities and risks within the multinational group.

Published in: International Tax Review (ITR) - 24 April 2020

Download

TP Liabilities on Criminal Tax in Italy: Assessing, Adopting and Avoiding

During the course of tax audits, Italian tax authorities often challenge the value of the goods or services subject to intra-group relationships.
These disputes are particularly relevant for the Italian entity/company that carries out such inter-company transactions.
Should there be no coincidence between the declared assessments and the assessments made - based on Article 9 Testo unico delle imposte sui redditi (TUIR) - potential liability scenarios related to the crime of unfaithful declaration could open up.

Published in: International Tax Review (ITR) - 15 April 2020

Download

Taxing the Digital Economy: a Realistic Goal for 2020?

An ambitious project.
New year. New resolutions.

From an international taxation perspective, the resolution to reach in 2020 is a clear and an urgent one: worldwide consensus on how to tax the digital economy. lt is all but a new project, considering that the discussion started 5 years ago. But 2020 has been set as the landmark-deadline year to find a common solution. lndeed, there is no more margin and no excuse for extensions.

Published in: 47th Issue IAFEI Quarterly

Download

Adapting Transfer Pricing Policies to Cope with COVID-19

The outbreak of COVID-19 has become one of the largest threats to the global economy and financial markets in history.
In this context, the change in economic conditions has resulted in significant consequences for the transfer pricing (TP) policies adopted by multinational groups, which are forced to promptly adapt their business models.
This rationale appears to be even more relevant in a globalised world where recessionary circumstances affecting a single country or a single market, spiral to generate an unforeseen amount of consequences at a global level.

Published in: International Tax Review (ITR) - 26 March 2020

Download

Italy Issues Changes to the Operation of Country-by-Country Reporting

The Ministry of Economy and Finance has produced some amendments regarding the use of the data and information contained in country-by-country reporting (CbCR) with the Ministerial Decree no. 194 of August 8 2019 (hereinafter, the Decree). Pursuant to Article 4 of the Decree of February 23 2017, the information contained in CbCR concerns consolidated data relating to all the companies of the group analysed regarding revenues, profits, taxes, etc., as well as the definition of all the activities and functions carried out by the group’s entities.

Published in: www.itrinsight.com (Local Insights) - January 2020

Download

Strategic Partnership with European Parliament

In October 2019, CFE Tax Advisers Europe celebrated its 60th Anniversary under the high patronage of the European Parliament, with a series of events, including a General Assembly, the inaugural Global Tax Advisers Platform conference and technical committee meetings held in Torino, Italy, on 3 and 4 October 2019, hosted by the Italian member organisations of CFE - Associazione Nazionale Tributaristi Italiani (ANTI) & Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC).
The CFE Tax Advisers Europe was honoured to receive the patronage of the European Parliament of its 60th Anniversary, confirming the close links between the objectives of CFE’s initiatives and the values of the European Union.

Published in: Living CFE - Tax Advisers Europe - July/December 2019

Download

Advance Pricing Arrangements: Optimal Tool – Optimal Framework?

Advance Pricing Agreements (APAs) are a diffused tool for taxpayers to obtain certainty in relation to the tax impact of their cross-border activities through an agreement with a tax administration in advance of such activities. APAs can be unilateral, bilateral, or multilateral depending on the number of national tax administrations involved, the latter two promising that the agreement made shall not be questioned in the other affected tax jurisdiction.

Departing from the enhanced mutual agreement procedure (MAP) framework recently established among Member States through the Tax Dispute Resolution Directive, a future EU legislative initiative could outline a robust framework for MAP APAs in the Single Market.

Published in: INTERTAX, Volume 48, Issue - January 22 2020

Download

Global Tax Advisers' Platform

GTAP: 2019 Convention
On 3 October 2019, the Global Tax Advisers’ Platform (GTAP) members convened in Turin.
Outcome of the meeting was the Turin-Busan Declaration, setting four key priorities for the fair and efficient operation of national and international tax systems.

Published in: 46th Issue IAFEI Quarterly

Download