(Finance) – Exor reached an agreement with the Revenue Agency for 746 million euros in relation to a complex tax dispute, with particular reference to the Exit Tax.
This was announced by the company itself, specifying that the dispute concerns the Italian company Exor Spa, which in December 2016 merged with its Dutch subsidiary Exor Holding Nv giving life to today’s Exor.
On the occasion of the cross-border merger, the outgoing company Exor Spa had applied the participation exemption (PEX) regime pursuant to Art. 87 of the Consolidated Income Tax Act. Under this regime, the capital gains on the value of these equity investments had been exempted and therefore excluded from taxable income for the purpose of determining the Exit Tax in the amount of 95% of their amount.
With the subsequent “Principle of Law number 10/2021”, issued on 11 May 2021, the Revenue Agency asserted the inapplicability of the PEX in cases in which a holding company transfers its fiscal residence abroad without maintaining a stable organization in Italy.
“As a result of the Principle of law published in 2021 – explains the company – a complex interpretative question has arisen regarding the application of the PEX legislation on the events of 2016. Exor remains convinced that it has operated according to the rules. and costs of a significant tax dispute, the Company has decided to sign a settlement agreement with the Revenue Agency, which involves the payment of 746 million euros, of which 104 million euros for interest. nor can it be interpreted as an acceptance – nor even a sharing, not even partial – of the theses supported a posteriori by the Revenue Agency “.
Exor underlines that in relation to the dispute regarding PEX, no sanctions have been imposed by the Revenue Agency.
“The effect of this settlement agreement, the payment of which has been fully paid today – concludes the company – will be reflected in the Company’s 2021 financial statements, to the extent of its competence. There are no further tax issues pending for Exor in relation to the years in which it had tax residence in Italy, for which the ordinary terms of assessment have also expired “.