Italian tax authorities ruling that CFC regime applies when indirect participation, via transparent entity (France) and trusts, in companies resident in black list countries (Isle of Man, Mauritius)

On 23 October 2008, the Italian Tax Authorities (ITA) issued Ruling No. 400 on the applicability of the CFC regime with regard to participation indirectly owned in companies resident in a state or territory having a privileged tax regime (black list countries), by an Italian company through a transparent entity and trusts.

(a) Facts. An Italian company (the Company) owns a 50% participation in a French company in a French organization (Gruppo di Interesse Economico – G.I.…