Do Italian and International Tax Rules Require a Literal Application of the Value Test under Article 9(4) of the MLI? Possible Remedies to the Disproportionate Tax Treatment of Capital-Intensive Inbound Investments

Abstract

Italy has opted for article 9(4) of the MLI. Taxpayers will shortly be confronted with the new “immovable properties clause” of article 13(4) of the OECD Model (2017). A literal interpretation of the “immovable properties clause” will discourage inbound investments. International law countering discrimination supports a purposive interpretation.