New Trend of Italian Tax Courts to Overrule IRAP Taxation of Dividends Received by Banks, Insurance Companies and Financial Holding Companies

Abstract

In this note, the authors discuss two Italian cases wherein the lower courts, in response to a Constitutional Court decision finding that the EU Parent-Subsidiary Directive (2011/96) tax exemption for intra-group dividends extends to Italian regional tax on productive activities (IRAP), reversed IRAP taxation of dividends received by banks, insurance companies and financial holding companies.