Transfer pricing is the price policy adopted by multinational corporations for the valorization of their controlled transactions (intercompany transactions). In Italy, the matter was much less regarded than in other countries until last 31st July 2010, the date of entry into force of the law nr.122/2010, which aims to adapt our legislation to the OECD guidelines on transfer pricing documentation.
The Italian legislation provides the non-application of the administrative penalty (from 100% to 200% of the higher tax eventually assessed) in case of disputes on transfer pricing, if during the verification or inspection by the authorities, the taxpayer gives to them the necessary documentations for all those fiscal years which are still open for assessment purposes (for which the taxpayer has previously sent a specific communication to the tax authorities).
The documentation has been identified by Revenue Agency Decree of 29th September 2010, prot. n. 2010/137654 based on art.26 Law Decree 78/2010 and is made by two set of documents: master file or country specific documentation, according to the “type” of taxpayer (subjective requirement).
The statement of the existence of these documents for tax periods prior to 2010 and which can be still assessed (2006-2009) is fulfilled by sending a special communication to the Revenue Agency, while from the fiscal year 2010 and subsequent, the communication will be done directly in the related tax return (on September 2011 for the fiscal year 2010).
Please note that this Measures are the result of an increased attention of the Fiscal Authorities in this area and this will reasonably lead to an increase in related controls.
In fact, are expected a series of reports to identify companies operating in multinational groups and volumes of controlled transactions existing between them.
Nowadays we talk about dangers of tax payer with the declared intention of the Revenue Agency to make a list of potential subjects to be subjected to tax audit.
Our office is already specialized in international taxation, in fact clients are largely made up of companies belonging to multinational groups, offers a full range of fiscal and corporate advices, on worldwide base, such as:
- Verification of transfer pricing implemented by our clients (using as tool, for example, the margin analysis);
- Refinement of the TP model used identifying possible areas of improvement of the model for future years;
- Preparation of the documentation: master file/country specific documentation;
- Analysis of the relationship among companies of the group and identification of the cases considered particularly critical/sensitive;
- Check up of the documentation to verify the adequacy (or any differences) compared to the standard required by current law;
- Support to the preparation/integration of the documentation required by current law;
- Assistance in case of tax litigation;
- Periodical review of documentation.
Why Rödl & Partner
The transfer pricing team has developed a legacy of knowledge and experiences in the discipline of the transfer pricing thanks to its membership to a global network that enables coordinated planning and simultaneously execution of operations in different tax jurisdictions involved, providing the client with the knowledge acquired and creating the opportunity for comparison on the modalities of implementation of legislation and the practices of each countries (especially in the EU and U.S.).
The team of experts in TP provides ad hoc services created according to the client’s needs.
We offer a “customised” advice, through a close working relationship both internally, among the professionals of the international network, and externally, directly with our customers.