jueves, 14 de abril de 2016

Italian Authorities clarify tax treatment of LBO transactions

Italy’s tax authorities issued guidance on 30 March 2016 that clarifies the tax treatment applicable to the acquisition of Italian targets by private equity funds through leveraged buyout (LBO) and merger leveraged buyout transactions. In a welcome move, the authorities confirmed that interest expense related to loans granted to an Italian special purpose vehicle incorporated for the purpose of acquiring the target is deductible under the ordinary rules. This has been an area fraught with controversy and challenges by the tax authorities on the grounds that the transactions were abusive and lacked a business purpose. The clarification likely should end most of the current tax litigation and prevent further challenges to LBOs.

Source & more info: Deloitte

No hay comentarios:

Publicar un comentario