Firm’s victory for General Electric before Regional Tax Court
The team from Tremonti Romagnoli Piccardi e Associati, composed of partner Cristiano Caumont Caimi and senior associate Ilaria Cherchi, successfully defended the General Electric group in tax litigation proceedings concerning the re-characterization of a contribution of a going concern into a “newco” and the subsequent transfer of the quotas, as a direct sale.
Taking into account the peculiarities of the case, which render it different from the vast number of prior cases on the subject, the Regional Tax Court of Piedmont, with its recent ruling, annulled the notice of assessment for registration tax, worth tens of millions of euro, issued against the audited company.
In particular, the Judges of Appeal accepted the defence argument that the two-step structure of the transaction had been imposed by the “golden power” legislation, applicable in the case at stake in order to guarantee government intervention in the transfer of the strategic asset in question. On this basis, the Judges concluded that the two-step structure was the real purpose of the transaction, and this must also be respected for the purposes of registration tax.