Another intervention of the Supreme Court on residency in tax havens

He continues the "close" of the Supreme Court on the issues of tax residence of individuals. By judgment of 1 October 2018, n. 23690, the Court spoke on the test, stating that in the case of low-tax territory in transferring the taxpayer must provide "comprehensive" evidence to overcome the presumption of maintenance in Italy of tax residence.

As you know, Article. 2, paragraph 2 bis of the Consolidated Income Tax Act provides that, unless proved otherwise, is resident in Italy the Italian citizens removed from the registers of the resident population, when they moved to low-tax states or territories.

In the case examined, the taxpayer has transferred his residence in the Principality of Monaco, but the presence of factors such as possession of properties in Italy, the representation of a company domiciled in Italy, the position of partner in an Italian and proximity corporations between the two countries, he has led the Court to hold not overcome the presumption of fiscal residence in Italy.

If the taxpayer wants to overcome that presumption, and not be subject to taxation in Italy must therefore provide full evidence about the actual transfer in low-tax country.

Sara Armella

October 2018

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