• Controversy over Sham Trusts and the "Look-Through" Rule
  • October 18, 2012 | Authors: Marco Abramo Lanza; Franco Pozzi; Simona Zangrandi
  • Law Firm: Studio Biscozzi Nobili - Milan Office
  • On December 27 2010 the tax authorities issued Circular 61/E, which provides further details on the Italian tax treatment of trusts. The circular focuses mainly on when an instrument is considered a 'sham' trust and must be disregarded for income tax purposes - that is, when it may not be considered a separate taxable entity in accordance with Article 73 of the Consolidated Tax Act.