Credem Holding – assisted by Cristiano Caumont Caimi (partner), Anna Maria Gulino (associate partner) and Ira Shiku (senior associate) of Tremonti Romagnoli Piccardi e Associati – was successful, before the Provincial Court of Reggio Emilia, in a case regarding the application of the regional tax on productive activities (IRAP) on dividends received by its subsidiary.

The judge upheld the taxpayer’s view according to which art. 6, paragraph 1, letter a), of IRAP Decree, which provides for a 50% taxation of dividends for IRAP purposes for banks and financial intermediaries: (i) is against the Parent-Subsidiary EU Directive, and (ii) should not be applied even in a domestic case, such as the one in question, given the prohibition, under a constitutional interpretation, of “reverse” discriminations.

On this, the Court adopted the “warning” given by the Italian Constitutional Court in judgment no. 12/2022, which, although having rejected the specific constitutional claim at stake (a discrimination claim focused on the fact that there was no distinction in the tax treatment of dividends from shares and from trading), warned that the Parent-Subsidiary Directive should be deemed as applicable also in domestic cases in order to avoid double taxation issues, on the basis of certain judgments of the Court of Justice of the EU.

Legalcommunity 25.03.2022