The regional court had set aside an assessment issued by the tax authorities concerning controlled transaction between P.V. s.r.l. and related parties. An appeal was filed by the tax authorities with the Supreme Administrative Court. Judgement of the Court The Supreme Administrative Court set aside the decision of regional court and referred the case back to the regional court in a different composition. Excerpts “Equally well-founded are the fourth and fifth pleas, which can be dealt with together because, under the different headings of infringement of the law and defective reasoning, they focus on the same issue, namely on the fact that the judgment of the regional court wrongly ruled out that the transactions involving the sale of goods by the taxpayer to foreign companies controlled by it could be classified as transfer pricing, instead framing them as part of a tax planning programme. The Office had identified two anomalies in the aforesaid transactions, namely the application of prices lower ...
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