Italy - The Principal Purpose Test and the Principle of Good Faith: Two Sides of the Same Coin?
- S. Morri; S. Guarino
- European Taxation, 2018 (Volume 58), No 1
- 4 December 2017
The Final Report on Action 6 of the OECD’s BEPS Project proposes to introduce, into the OECD Model (2014), a general anti-abuse rule, i.e. the Principal Purpose Test (PPT). In this note, the authors attempt to answer some concerns that have arisen regarding the true nature of the PPT rule and its effectiveness under the Italian legal system. The note’s conclusions are based on the Multilateral Convention, an analysis of the OECD’s position, the doctrine and relevant case law.