Tag: Participation Exemption  

See: Affiliation privilege

Exor in €746 million settlement with the Italian Tax Authorities

Exor in €746 million settlement with the Italian Tax Authorities

In a press release dated February 18, 2022, Exor announced that a €746 million settlement had been reached with the Italian Tax Authorities (“Agenzia delle Entrate”) related to a cross-border merger in December 2016 that resulted in all the activities of the group being moved from Italy to the Netherlands. According to Exor the exit tax claimed by the tax authorities was a result of a changed interpretation of Italien Participation Exemption rules issued by the authorities: Principio di diritto n. 10/2021. Exor Press release Settlement with the Italian Tax Authorities ... Read more
Hungary vs G.K. Ktf, December 2021, Court of Appeals, Case No. Kfv.V.35.306/2021/9

Hungary vs G.K. Ktf, December 2021, Court of Appeals, Case No. Kfv.V.35.306/2021/9

G.K. Ktf was a subsidiary of a company registered in the United Kingdom. On 29 December 2010 G.K. Ktf entered into a loan agreement with a Dutch affiliate, G.B. BV, under which G.B. BV, as lender, granted a subordinated unsecured loan of HUF 3 billion to G.K. Ktf. Interest was set at a fixed annual rate of 11.32%, but interest was only payable when G.K. Ktf earned a ‘net income’ from its activities. The maturity date of the loan was 2060. The loan was used by G.K. Ktf to repay a debt under a loan agreement concluded with a Dutch bank in 2006. The bank loan was repaid in 2017/2018. The interest paid by G.K. Ktf under the contract was deducted as an expense of HUF 347,146,667 in 2011 and HUF 345,260,000 in 2012. But, in accordance with Dutch tax law – the so called participation exemption – G.B BV did not include the interest as taxable income in its ... Read more