New provision

Article 31-octies Law Decree 137/2020 (Decreto Ristori) added the following sentence to article 20 Presidential Decree 602/1973: “In case of taxes or higher taxes due based on agreements concluded with foreign competent authorities following interpretative mutual agreement procedures of general character under tax treaties, interests are due from the date of the agreements”

Comments

The new provision:

  • represents an exception to the general rule under which interests on late tax payments are calculated from the date when the tax payment was due
  • avoids that taxpayers bear the cost of the delays in concluding the agreements
  • is in line with the provision related to interests due on MAP under the EU Tax Dispute Resolution Directive (article 19 Legislative Decree 49/2020)
  • should be clarified with reference to the notion of “interpretative MAP of general character”
  • should be modified to cover also MAP under the Arbitration Convention 90/436/EEC
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