The Provincial Tax Court of Bergamo upheld the appeal lodged by an Italian limited company operating in the construction sector, duly assisted by the Firm, regarding the use of the tax-deferred reserve, not paid, established following the tax realignment of the assets. In particular, following a reverse merger, the incorporating limited company, in accordance with accounting principles, used the aforementioned reserve, with a different reclassification, to reconstitute its equity in the same quantitative terms that would have occurred in the event of a direct merger. The Revenue Agency deemed the aforementioned use taxable.

The Company argued, above all, that it had filed an amended tax return, adapting to the different interpretation of the accounting standard provided by the Tax Authority following the merger operation, thus restoring the original reserve and, that in any case the cancellation from the net assets of the aforementioned reserve did not constitute a prerequisite for taxation of the same, that only occurs in the event of an actual distribution to shareholders (which did not occur).

The first instance Judges fully accepted the Company’s appeal, acknowledging both the validity of the amended tax return and the fact that only a distribution of the reserve to shareholders can constitute a prerequisite for taxation.

The Firm’s team consisted of partners Dario Romagnoli, Cristiano Caumont Caimi, associate partner Fabrizio Cancelliere and senior associate Nicola Borzomì.