Indirect taxes imposed on trusts: clarifications and uncertainties in the wake of the recent Supreme Court rulings

Abstract

For the first time, in two recent decisions, the Italian Supreme Court has provided its view on the inheritance and gift tax regime applicable to trusts. The interpretation provided is in line with the previous guidance released by the Italian tax authorities as from 2007, but conflicts with previous lower court case law: according to the Supreme Court, any deeds through which assets are contributed to a trust are subject to gift tax upon such transfer rather than at a later stage, when the trust assets are distributed to the beneficiaries of the trust.