An ITR-TP Special Focus
Stefano Bognandi and Elena Baron of LED Taxand considers recent Italian case law and compliance with the arm’s-length principle.
On May 20 2021, the Italian Supreme Court (Italian Supreme Court, decision No. 13850/2021) was called to decide upon a dispute concerning the compliance with the arm’s-length principle
– stated by Article 110 (7), of the Italian Income Tax Code (ITC) – of non-interest bearing intercompany loans (the decision). The conclusions reached are someway innovative in the Italian jurisprudential landscape and may seem prima facie deviating from the arm’s-length principle.