A new Decree, which includes changes to the treatment of tax
avoidance and abuse of law, and which should limit the more
enthusiastic challenges by the revenue authorities, has been
approved by the Italian Government.
VAT in UAE: Comparison of Draft and Final Executive Regulations of the UAE VA...Manoj Agarwal
VAT in UAE
A Comparison of Draft and Final Executive Regulations issued by the Federal Tax Authority of the UAE. Changes and Additions are marked in red and blue colour in a easy to understand way.
UAE VAT Law - Draft Executive RegulationManoj Agarwal
Much Awaited Regulations released by the UAE Government. Cabinet has approved draft of the Executive Regulations of the UAE VAT Law which will make UAE VAT Law implementation simplified.
Executive Regulations of UAE FTP - VAT in UAEManoj Agarwal
The UAE has released Executive Regulations of Federal Law No 7 of 2017 on Tax Procedures (FTP).
The Executive Regulations provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) in the UAE and Excise Taxes along with any future taxes to be introduced in the UAE.
VAT in UAE, Tax in UAE
VAT in UAE - Compilation of FTP with Executive Regulations and Fee & Fines Manoj Agarwal
UAE has released Federal Tax Procedures and its Executive Regulations to be followed for VAT and other Tax Laws. UAE cabinet has also approved Federal Tax Authority's Service Fee and Administrative Fines for VAT and other Tax Law.
This eBook is a compilation of Tax Procedures with Executive Regulations and Fee and Fine for VAT and other tax laws in UAE.
UAE Federal Tax Authority has released its Fee and Fines for the UAE VAT and Excise Law. This includes the administration fee of Federal Tax Authority with the fines and penalties on non compliance of Tax Laws of the UAE.
The United Arab Emirates (UAE) has released the text of Federal Tax procedures Law (FTP). The FTP Law provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) and Excise Taxes. Also any future taxes introduced in the UAE.
This write up consist of unofficial translation of the Federal Tax procedures Law (FTP)/ UAE VAT Law with views and suitable modifications, wherever appropriate, by the author.
Approved Executive Regulations now available for the UAE VAT Law. All businesses with taxable supplies of more than AED 375,000 needs to register before 4th December 2017 and be fully compliant with the UAE VAT Law
VAT in UAE: Comparison of Draft and Final Executive Regulations of the UAE VA...Manoj Agarwal
VAT in UAE
A Comparison of Draft and Final Executive Regulations issued by the Federal Tax Authority of the UAE. Changes and Additions are marked in red and blue colour in a easy to understand way.
UAE VAT Law - Draft Executive RegulationManoj Agarwal
Much Awaited Regulations released by the UAE Government. Cabinet has approved draft of the Executive Regulations of the UAE VAT Law which will make UAE VAT Law implementation simplified.
Executive Regulations of UAE FTP - VAT in UAEManoj Agarwal
The UAE has released Executive Regulations of Federal Law No 7 of 2017 on Tax Procedures (FTP).
The Executive Regulations provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) in the UAE and Excise Taxes along with any future taxes to be introduced in the UAE.
VAT in UAE, Tax in UAE
VAT in UAE - Compilation of FTP with Executive Regulations and Fee & Fines Manoj Agarwal
UAE has released Federal Tax Procedures and its Executive Regulations to be followed for VAT and other Tax Laws. UAE cabinet has also approved Federal Tax Authority's Service Fee and Administrative Fines for VAT and other Tax Law.
This eBook is a compilation of Tax Procedures with Executive Regulations and Fee and Fine for VAT and other tax laws in UAE.
UAE Federal Tax Authority has released its Fee and Fines for the UAE VAT and Excise Law. This includes the administration fee of Federal Tax Authority with the fines and penalties on non compliance of Tax Laws of the UAE.
The United Arab Emirates (UAE) has released the text of Federal Tax procedures Law (FTP). The FTP Law provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) and Excise Taxes. Also any future taxes introduced in the UAE.
This write up consist of unofficial translation of the Federal Tax procedures Law (FTP)/ UAE VAT Law with views and suitable modifications, wherever appropriate, by the author.
Approved Executive Regulations now available for the UAE VAT Law. All businesses with taxable supplies of more than AED 375,000 needs to register before 4th December 2017 and be fully compliant with the UAE VAT Law
With VAT implementation taking effect in under six months, the Ministry of Finance have now provided further clarification of the rules which will be imposed in respect of VAT within the UAE, furthermore we have seen updates across Saudi Arabia recently, with announcements being made in respect of the registration process. This short alert from Grant Thornton UAE summarises the recent clarifications which the UAE have announced, alongside the registration elements required within Saudi Arabia.
The Cabinet Secretary for National Treasury in his Budget speech announced enactment of he long awaited VAT Regulations 2017. This, after thee first drafts were published in 2014.
The subsidiary legislation seeks to streamline the VAT Act with the Tax Procedures Act 2015 and will assist in interpretation and implementation of the VAT Act 2013. These regulations took effect from 4 April 2017.
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
These slides provide an overview of Goods And Service Tax. I have covered some of the Definitions related to GST here.
Ms. Suchitra Kumari has assisted in editing these slides.
VAT Implementation in KSA (Kingdom of Saudi Arabia)Mitesh Katira
VAT is on the way of implementation in the KSA from 1st of Jan 2018. It is critical for the companies to understand the nuances of the same and work on a roadmap to implement VAT so as to optimize the impact not only on profitability, working capital, pricing but also ERP, team sensitization and vendor education.
VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets.
VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. The understanding concepts of “Supply”, “Place of Supply” and “Time of Supply” become critically important for effective implementation of KSA VAT.
Here is a simple graphical guide for understanding the KSA VAT.
Presentation is an attempt to give brief introduction of VAT in UAE & Provisions of Input Tax in GST Law.
Input tax is going to be the most important aspect from organisation point of view, cause levy is on supply value and not on value addition. Proper planning is very very important.
Compilation of FTA Clarifications & User Guides by manoj agarwalManoj Agarwal
ebook is a compilation of all the Clarifications and User Guides issued by Federal TAx Authority "FTA" related with UAE VAT Law and Executive Regulations.
Kingdom of Saudi Arabia (KSA) Value Added Tax (VAT) Law (with Index)Pankaj S. Jain
Pleased to share a curated version of KSA VAT Law with an index for ease of reading and reference. An index is a basic yet important element to give an overview of all the provisions of the law.
This document is intended for CFOs, finance controllers, finance managers, lawyers and tax professionals involved in the VAT implementation in the KSA.
We are a team of tax and accounting professionals, advising & assisting companies/businesses on VAT implementation in the UAE and Saudi Arabia. Please feel free to contact us on info@AskPankaj.com
Introduction To Tax-Efficient Investing (Part 1)Robert Keebler
This "Introduction To Tax-Efficient Investing" webinar was the first of a four-part series with Advisors4Advisors on tax-efficient Investing. Advisors4Advisors members can view the on-demand webinar replay and receive CFP and IMCA CE credit at http://bit.ly/taxefficient1
With VAT implementation taking effect in under six months, the Ministry of Finance have now provided further clarification of the rules which will be imposed in respect of VAT within the UAE, furthermore we have seen updates across Saudi Arabia recently, with announcements being made in respect of the registration process. This short alert from Grant Thornton UAE summarises the recent clarifications which the UAE have announced, alongside the registration elements required within Saudi Arabia.
The Cabinet Secretary for National Treasury in his Budget speech announced enactment of he long awaited VAT Regulations 2017. This, after thee first drafts were published in 2014.
The subsidiary legislation seeks to streamline the VAT Act with the Tax Procedures Act 2015 and will assist in interpretation and implementation of the VAT Act 2013. These regulations took effect from 4 April 2017.
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
These slides provide an overview of Goods And Service Tax. I have covered some of the Definitions related to GST here.
Ms. Suchitra Kumari has assisted in editing these slides.
VAT Implementation in KSA (Kingdom of Saudi Arabia)Mitesh Katira
VAT is on the way of implementation in the KSA from 1st of Jan 2018. It is critical for the companies to understand the nuances of the same and work on a roadmap to implement VAT so as to optimize the impact not only on profitability, working capital, pricing but also ERP, team sensitization and vendor education.
VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets.
VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. The understanding concepts of “Supply”, “Place of Supply” and “Time of Supply” become critically important for effective implementation of KSA VAT.
Here is a simple graphical guide for understanding the KSA VAT.
Presentation is an attempt to give brief introduction of VAT in UAE & Provisions of Input Tax in GST Law.
Input tax is going to be the most important aspect from organisation point of view, cause levy is on supply value and not on value addition. Proper planning is very very important.
Compilation of FTA Clarifications & User Guides by manoj agarwalManoj Agarwal
ebook is a compilation of all the Clarifications and User Guides issued by Federal TAx Authority "FTA" related with UAE VAT Law and Executive Regulations.
Kingdom of Saudi Arabia (KSA) Value Added Tax (VAT) Law (with Index)Pankaj S. Jain
Pleased to share a curated version of KSA VAT Law with an index for ease of reading and reference. An index is a basic yet important element to give an overview of all the provisions of the law.
This document is intended for CFOs, finance controllers, finance managers, lawyers and tax professionals involved in the VAT implementation in the KSA.
We are a team of tax and accounting professionals, advising & assisting companies/businesses on VAT implementation in the UAE and Saudi Arabia. Please feel free to contact us on info@AskPankaj.com
Introduction To Tax-Efficient Investing (Part 1)Robert Keebler
This "Introduction To Tax-Efficient Investing" webinar was the first of a four-part series with Advisors4Advisors on tax-efficient Investing. Advisors4Advisors members can view the on-demand webinar replay and receive CFP and IMCA CE credit at http://bit.ly/taxefficient1
In July 2013 the OECD unveiled the Action Plan on Base Erosion and Profit Shifting (BEPS), which aims to develop a new set of standards to prevent double non-taxation and ensure that profits are taxed where they are actually generated. By Grace Perez-Navarro, Deputy Director, and Raffaele Russo, Head of the BEPS Project, Centre for Tax Policy and Administration.
The Ireland that works campaign maps out the key priorities for business in the next phase of the recovery and will form a central part of Ibec's activities to influence and shape the national debate.
With the Troika gone, Ireland has important decisions to make on how to build on the economic progress already made, tackle unemployment and drive growth across the economy. We need to get these right.
At Ibec we plan to lead the debate. We have identified five pressing issues on the national agenda that will have a major impact on Ireland’s success into the future:
1. We need to reduce the tax burden: Ireland is out of line internationally and our income tax rates, in particular, are too high. Irish consumers deserve a break.
2. We need better government: Poorly designed policy, legislation and regulation add to the cost of doing business and are an obstacle to growth and job creation.
3. We need to invest in the future: To meet our future economic needs, we need to spend much more on infrastructure projects and skills and education.
4. We need to extend Ireland’s global reach: International debates on tax and EU reform could have major implications for Ireland. We need to influence and shape the agenda.
5. We need to promote entrepreneurship: Business need to have access to effective enterprise supports, credit and export markets. Risk needs to be rewarded.
We hope the campaign priorities are relevant, challenging and resonant with your own ambitions for your business and for Ireland. Ibec will be rolling out more elements of the campaign over the coming weeks and months, and we'll keep you updated on our blog.
Download, share or embed this campaign brochure.
You can also join the conversation on twitter, #irelandworks @ibec_irl or on the Ibec Linkedin group.
In our efforts toward personal finance literacy and educating the younger generation to take smart personal finance decisions for stable future we have been running series of presentation for staff at startups in pune. This is one of thous presentation held in in pune last month.
2016 Edelman TRUST BAROMETER - Global ResultsEdelman
Our 2016 Edelman TRUST BAROMETER revealed trust levels in all four institutions have reached its highest level since the Great Recession, with business receiving the largest increase in trust among both the informed public and the larger general population.
There is a growing trust disparity that has put business in a new situation of strength, a unique position that translates into an opportunity to help mend the trust divide.
For more information, visit www.edelman.com/trust2016
Everything You Must know about New Tax Procedure Law of UAE for VAT 2023Horizon Biz Consultancy
As UAE prepares for the implementation of the new Tax Procedure Law for VAT in 2023, our comprehensive guide provides essential insights to help you prepare and succeed. Our complete guide has all the information you need to navigate this important change with confidence. Website: https://www.horizonbizco.com/everything-you-must-know-about-new-tax-procedure-law-of-uae-for-vat-2023/
On 29th October 2021, the Indonesian government issued Law No. 7/2021 that harmonises the existing General Provisions and Tax Procedures, Income Tax, VAT, and other tax-related laws. The newly enacted law introduces policy changes and new tax impositions that affect all taxpayers in Indonesia.
In July, 2014 the minister of finance revealed the draft Tax Code bill.
It addresses many issues identified by the government as leading to (i) income leakages from state budget (ii) ineffective tax collection.
The main modifications concern GAAR, tax rulings and penalty interest scheme.
ALBANIA Chinese citizens excluded from Type C Visa regime
Fiscal package 2020 in Albania
Tax Procedures in Albania 2020
Value Added Tax 2020
Albania Personal And Profit Tax 2020
Albania National Taxes 2020
ALBANIA TAX FREE Real Estate Donation to Family Members 2020
New rules on retrospective tax penalty waivers, installments, tax litigation,...AhmedTalaat127
For the first time since the UAE tax laws came into effect in October 2017, the legislation now:
Grants permission to pay tax penalties in installments.
Specifies reasons that permit penalty waivers. *
Prohibits installments or waivers if litigation is ongoing.
Allows for a class action against tax penalties.
Permits waiver of penalties paid during the past five years.
Before, the legislation only stated that “accepted justifications” may substantiate penalty waivers, but it was unclear what would entail an accepted justification.
Importantly, taxpayers must now choose between either disputing tax penalties through the tax dispute resolution committees and the Federal Courts — or filing installment or waiver applications. The new changes make it unworkable for both to occur at the same time. And because of the time limitations, a dispute may be time-barred if the taxpayer opts to file an installment or waiver application instead of contending the penalties before the tax dispute resolution committees and the Federal Courts.
This is a substantive consideration for taxpayers as they must weigh the risks of sacrificing litigation against the risk of receiving a rejection on an installment or waiver application.
MEXICO’S 2014 TAX REFORM: A BRIEF REVIEW OF SOME OF ITS MOST RELEVANT ISSUESHogan Lovells BSTL
On 8 September 2013, the Mexican President
submitted to the Mexican Congress a bill
proposing a comprehensive tax reform.
Among other aspects, this bill proposed:
• the enactment of a new Income Tax Law;
• the suppression of the business flat rate tax
(‘IETU’) and tax on cash deposits (‘IDE’);
and
• significant amendments to the Value
Added Tax Law, Federal Tax Law and to
various excise taxes.
The e-commerce boom was marked by multiple players, rosy valuations and now slowly reality has set in and the price wars have taken their toll. The VAT authorities across the country have had their tryst with this industry with notices, demands, levy of entry tax and litigation. Currently whenever there is a tax or a business problem, the immediate response from the industry or the administrator or the media is that GST is the only solution.
New rules on retrospective tax penalty waiversAhmedTalaat127
For the first time since the UAE tax laws came into effect in October 2017, the legislation now:
Grants permission to pay tax penalties in installments.
Specifies reasons that permit penalty waivers. *
Prohibits installments or waivers if litigation is ongoing.
Allows for a class action against tax penalties.
Permits waiver of penalties paid during the past five years.
*Before, the legislation only stated that “accepted justifications” may substantiate penalty waivers, but it was unclear what would entail an accepted justification.
Importantly, taxpayers must now choose between either disputing tax penalties through the tax dispute resolution committees and the Federal Courts — or filing installment or waiver applications. The new changes make it unworkable for both to occur at the same time. And because of the time limitations, a dispute may be time-barred if the taxpayer opts to file an installment or waiver application instead of contending the penalties before the tax dispute resolution committees and the Federal Courts.
This is a substantive consideration for taxpayers as they must weigh the risks of sacrificing litigation against the risk of receiving a rejection on an installment or waiver application.
INSIGHT: Treaty Shopping—Is the New Principal Purpose Test a Game Changer? (P...Christos Theophilou
Is the new Principal Purpose Test a game-changer for treaty shopping in relation to holding, financing and royalty structures? The article was published in Bloomberg BNA at International Tax News.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
The Main Procedures for Obtaining Cypriot Citizenship
Italian Tax Reform
1. Reproduced with permission from BNAI European Tax
Service Monthly Digest, 17 ETS 16, 10/30/15. Copyright
2015 by The Bureau of National Affairs, Inc.
(800-372-1033) http://www.bna.com
VOLUME 17, NUMBER 10 >>> OCTOBER 2015
2. Italian Tax Reform:
New Legislation on
Abuse of Law and
Statute of
Limitations
Vittorio Salvadori di Wiesenhoff
K&L Gates
A new Decree, which includes changes to the treatment of tax
avoidance and abuse of law, and which should limit the more
enthusiastic challenges by the revenue authorities, has been
approved by the Italian Government. The following article
examines the changes.
The Italian government has recently approved a
new decree which reshapes the definition of
abuse of law and tax avoidance and changes
the rules on the statute of limitations in the event of
tax crimes. The decree also introduces a cooperative
compliance program to improve relationships be-
tween taxpayers and Italian tax authorities.
The new decree, which represents the first step of
implementation of a wider tax reform, in compliance
with the empowering legislation enacted by the Par-
liament in 2014, was published in the Official Gazette
August 18, 2015, n. 180 as Legislative Decree August 5,
2015 n. 128 (the ‘‘Decree 128’’) and is effective as of
September 2, 2015 (the ‘‘Effective Date’’).
This document provides an overview of the mea-
sures included in the Decree 128 concerning the abuse
of law and the statute of limitations.
I. Abuse of Law and Tax Avoidance
A. Introduction
Art. 1 of the Decree 128 introduces a new general anti-
avoidance rule (‘‘GAAR’’), within the Taxpayer Bill of
Rights (Law 212/2000 – ‘‘TBR’’), with a view to provide
more certainty to the taxpayers.
The GAAR replaces and supplements the current
(semi-general) anti-avoidance provision set out by
Art. 37-bis of the Decree 600/73, whose scope of appli-
cation was limited to Italian income taxes and to a
closed list of transactions, and the abuse of law doc-
trine developed by the Supreme Court, which has
been extensively applied by the Italian tax authorities
and tax courts beyond the narrow borders ruled by
Art. 37-bis.
The GAAR is effective as from the first day of the
month following that of the Effective Date (i.e., as
from October 1, 2015). However, the new rules will
also apply retrospectively to transactions which have
not yet been challenged by the tax authorities through
a formal deed of assessment.
B. The New Definition of Abuse of Law
Art. 10-bis of the TBR provides for a brand new defi-
nition of abuse of law and tax avoidance.
An abuse of law exists when one or more transac-
tions ‘‘lack any economic substance and, despite being
formally in compliance with tax laws, are essentially
aimed at obtaining undue tax advantages’’. These abu-
Vittorio Salvadori
di Wiesenhoff is
head of the tax
department at K&L
Gates, Milan
2 10/15 Copyright 2015 by The Bureau of National Affairs, Inc. TPETS ISSN 1754-1646
3. sive schemes are not opposable to the tax authorities,
which shall disregard the tax advantages so achieved
and compute the taxes on the basis of the rules and
principles that have been circumvented, taking into
account any tax payments made by the taxpayer in
connection with the abusive transactions.
Art. 10-bis also states the following:
(a) transactions are deemed to be lacking any eco-
nomic substance when they consist of facts, acts
and contracts, even interconnected, that are not
able to generate economic effects other than the
tax advantages. The inconsistency between the in-
dividual transactions and the underlying juridical
rationale of their aggregation or between the legal
instruments that have been adopted and standard
market practices can be regarded as being evi-
dence of a lack of economic substance;
(b) the undue tax advantages consist in benefits, even
if not achieved in the short term, that are in con-
flict with the purpose of the tax provisions or with
the principles of the tax legal framework;
(c) there is no abuse when a transaction is justified by
sound and non-marginal non-tax reasons, includ-
ing managerial and organizational ones, being
aimed at improving the structure or the function-
ality of the business.
The provision clarifies that taxpayers are allowed to
choose between different op-
tional tax regimes provided by
the law or between alternative
transactions leading to a differ-
ent tax burden. In other words,
it is recognized that under Ita-
ly’s detailed rules, taxpayers
frequently have a choice as to
the way in which transactions
can be carried out, and that dif-
fering tax results arise depend-
ing on the choice that is made.
The GAAR does not challenge
such choices. Clearly, it may
however still come into opera-
tion if the course of action
taken by the taxpayer cannot be
regarded as reasonable and es-
sentially aims to achieve a fa-
vorable tax result that the
lawmaker did not anticipate when it introduced the
tax rules in question.
C. Taxes to Which the GAAR Applies
The GAAR applies to all taxes, with the exclusion of
custom duties.
D. Ruling Applications
Taxpayers can file a ruling application to ascertain
whether envisaged or already completed transactions
imply an abuse of law. The application shall be filed
prior to the deadline for the filing of the tax return or
for the completion of the tax formalities relating to the
underlying transactions.
E. The GAAR and the Rest of the Tax Rules
The Revenue Agency is allowed to make abuse of law
challenges only when the relevant tax advantages
cannot be struck out with the argument that specific
tax provisions have been violated. This means that it
will usually be necessary to determine whether the ar-
rangements under scrutiny could achieve their tax
avoiding purposes under the rest of the tax code,
before challenging them on abuse of law grounds ap-
plying the GAAR.
F. Management of the GAAR by the Tax Authorities
Art. 10-bis of the TBR includes a set of comprehensive
procedures for tax assessments involving an abuse of
law under the GAAR. Failing to comply with these
rules would render the assessment null and void.
Before issuing an assessment based on the GAAR,
the Revenue Agency shall address to the taxpayer a
formal request for clarification of the transaction(s),
detailing the reasons why an alleged abuse of law is
being considered. This formal request shall be served
within the expiration of the ordinary statute of limita-
tions and the taxpayer shall reply within the following
60-day period. It is also stated that the time span be-
tween the receipt of the taxpayer’s reply or the dead-
line for sending such reply and the ordinary statute of
limitations shall be not less than 60 days. If the time
span is shorter, the Revenue Agency is granted an ex-
tension of the period within which they can serve the
tax assessment.
Abuse of law challenges under the GAAR shall be
raised with a specific tax assessment, which cannot in-
clude other charges and shall be properly motivated.
In this respect, the Revenue Agency is required to
specify the rules and principles that have been alleg-
edly circumvented and detail the undue tax advan-
tages, making also reference to the clarifications
provided by the taxpayer.
G. Burden of Proof
The authorities shall provide evidence of the alleged
abuse of law, as defined above, while the taxpayer may
invoke and demonstrate the existence of non-tax rea-
sons supporting the transaction that is being chal-
lenged.
H. Administrative Tax Penalties
Art. 10-bis(13) of the TBR states that transactions that
amount to an abuse of law under the GAAR shall be
sanctioned with the imposition of the ordinary ad-
ministrative tax penalties (i.e., the penalties that may
be imposed for the filing of incorrect tax returns
and/or for failure in making the required tax pay-
ments).
Despite the clear statement in the GAAR, it is still
debatable whether the imposition of penalties in re-
spect of abusive transactions is reasonable and consis-
tent with the provisions governing tax sanctions.
‘‘[T]he new provisions...may also
apply retrospectively to previous
transactions that have not been
formally assessed yet by the
Revenue Agency under the old
rules
’’
10/15 Tax Planning International European Tax Service Bloomberg BNA ISSN 1754-1646 3
4. J. Tax Crimes
It is now specifically ruled that abusive transactions
that are challenged under the GAAR do not amount to
tax crimes. This is a noteworthy development which
should significantly reduce the flow of criminal law in-
vestigations and procedures in respect of allegedly
abusive schemes. On the basis of the general criminal
law principle whereby newly enacted legislation ap-
plies on a retroactive basis if more favorable to the de-
fendant (the so-called favor rei), the provision should
allow protection from criminal law proceedings in re-
spect of abusive schemes that have been put in place
prior to the entry into force of the GAAR. It is, on the
opposite, debatable whether the provision would also
positively affect pending criminal cases.
II. Tax Crimes and Statute of Limitations
A. The Current Rules
Under current rules, the statute of limitations is
doubled when the Revenue Agency is required to
make a filing with the public prosecutor for alleged
tax crimes. According to the approach adopted by the
tax authorities, as endorsed by the Constitutional
Court, the extension also applies when the filing is
made after the expiration of the ordinary statute of
limitations.
B. The New Rules
Art. 2 of the Decree 128 changes the rules, stating that
the period of time in which a deed of assessment can
be served is not doubled if the filing with the public
prosecutor is made after the expiration of the ordi-
nary statute of limitations.
On the basis of the amended rules, therefore, the
statute of limitations will generally expire on Decem-
ber 31 of the fourth year following the year of filing
the relevant tax return, unless, prior to the elapse of
this ordinary deadline, the Italian tax authorities
make the filing with the public prosecutor (in which
event the term is doubled). The extension will in any
event no longer apply for challenges that are
grounded on the basis of abuse of law.
C. The Grandfathering Provision
Art. 2 includes a grandfathering provision for:
(i) tax and penalty assessment notices served before
September 2, 2015 which rely on the doubling of
statute of limitations under the previous (looser)
rules;
(ii) tax audit reports of which the taxpayer becomes
formally aware before September 2, 2015, pro-
vided that the subsequent tax or penalty assess-
ment notices are served before December 31,
2015.
III. Conclusions
Decree 128 introduces detailed rules on abuse of law,
providing taxpayers with a comprehensive and long-
awaited framework on the matter. These new provi-
sions, combined with those which limit the Italian tax
authorities’ right to extend the statute of limitations in
the event of an alleged tax crime, should improve tax-
payers’ rights and reduce the uncertainties generated
in recent years by the aggressive approach adopted by
the Revenue Agency and by public prosecutors when
challenging tax advantages on the basis of the abuse
of law doctrine.
The new rules will not only affect Italian resident
persons; they are relevant for non-Italian taxpayers as
well. Indeed, foreign investors will want to consider
the impact of Decree 128 when structuring the acqui-
sition of Italian properties or the execution of transac-
tions on assets that generate Italian-source income
(e.g., equity and derivative trades during dividend
season). Where these transactions are structured in a
tax-efficient manner or allow for the application of
certain tax advantages, they may be challenged by the
Italian tax authorities relying on the GAAR.
Reference would therefore be made to the new defi-
nition of abuse of law in Art. 10-bis of the TBR and the
Revenue Agency would have to follow the procedures
set out for GAAR assessments. In addition, these chal-
lenges should no longer entail the commencement of
a criminal law proceeding.
But the new provisions may not only be relevant for
the future. Indeed, they may also apply retrospectively
to previous transactions that have not been formally
assessed yet by the Revenue Agency under the old
rules. Moreover, they may positively affect ongoing
criminal law proceedings that are based on abuse of
law challenges since abusive conducts can no longer
result in a tax crime.
Vittorio Salvadori di Wiesenhoff is head of the tax department at
K&L Gates, Milan. He can be contacted at
vittorio.salvadori@klgates.com.
4 10/15 Copyright 2015 by The Bureau of National Affairs, Inc. TPETS ISSN 1754-1646