Newsletter Tax Department | The implementation in the Italian tax framework of the EU Council Directive 2017/1852 of 10 October 2017 on tax disputes resolution

The mechanisms for the resolution of tax disputes provided for by EU Directive 2017/1852 of 10 October 2017 have been recently enacted at the Italian level through Legislative Decree No. 49 of 10 June 2020. The newly introduced resolution mechanisms aim to resolve certain cases of double taxation between EU Member States (e.g., transfer pricing tax audits) related to the interpretation and application of the Double Taxation Conventions and the EU Arbitration Convention.

Legislative Decree will enter into force on 25 June 2020 and will apply to the requests to start a mutual agreement procedure filed from 1 July 2019 on tax disputes relating to the tax period beginning on 1 January 2018 and subsequent periods.

The Newsletter sets out the main aspects of the new tax dispute resolution mechanisms, as well as highlighting the most important novelties introduced by the Decree on mutual agreement procedures between EU Member States, which are of great interest as they overcome some of the critical issues affecting international procedures available until yesterday.