Foreign-Dressed Companies: Freedom of Establishment versus Place of Effective Management

In the Supreme Court’s decision of 9 March 2021, in Modlot International Holding SA (Case 6476), the old argument regarding a foreign-dressed company was resurrected. According to this position, the use of a foreign-dressed company does not necessarily abuse the freedom of establishment and tax residence should be determined in accordance with the territorial criteria provided in article 73 of the Italian Income Tax Consolidation Act.