Tax
Legal developments occurring within the EU and the international community, as well as within the framework of bilateral and multilateral relations among States, are bound to play a pivotal role in the restructuring strategies of multinational enterprises.
Thanks to the constant and proactive participation of international and supranational key organizations and associations, our “International Tax” team has been paving the way for guidelines, positions, and principles impacting strategic and entrepreneurial group policies.
Our “International Tax” team renders consultancy services and professional assistance on EU and international tax issues involving multinational enterprises and corporate groups on the following aspects:
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restrictions, advantages, application scope of Double Tax Treaties;
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implications linked to the existence and the application of bilateral or multilateral treaties regarding information exchange matters;
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application of EU provisions regulating cross-border income flows;
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analysis and further investigation of tax variables impacting strategic and business choices of multinational groups;
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assistance and support in foreign expansion procedures (incorporation of subsidiaries and holding companies, opening of new representative offices, etc.);
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consultancy and assistance on tax issues regarding foreign permanent establishments of Italian companies as well as Italian permanent establishments of foreign companies;
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analysis and exploration of tax issues and relevant implications relating to extraordinary cross-border operations within an EU and an extra-EU framework (i.e., mergers, de-mergers, corporate contributions, participations exchange, etc.);
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analysis and in-depth investigation of the various issues pertaining to corporate residence, in the light of domestic and treaty provisions as well as any applicable EU principles;
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analysis and in-depth examination of EU and non-EU VAT aspects.
We will help you implementing strategies that will minimize your tax risks/exposures and result in minimized cost compliance.
Our multidisciplinary and integrated teams are a distinctive success factor for internationalization’s projects (ensuring different competences: legal, fiscal, commercial, strategic) and a guarantee of an excellent service.
Our “International Tax” team renders consultancy services and professional assistance on EU and international tax issues involving multinational enterprises and corporate groups on the following aspects:
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analysis and further investigation of tax variables impacting strategic and business choices of multinational groups;
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application of EU provisions regulating cross-border income flows;
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assistance and support in foreign expansion procedures (incorporation of subsidiaries and holding companies, opening of new representative offices, etc.);
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consultancy and assistance on tax issues regarding foreign permanent establishments of Italian companies as well as Italian permanent establishments of foreign companies;
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analysis and exploration of tax issues and relevant implications relating to extraordinary cross-border operations within an EU and an extra-EU framework (i.e., mergers, de-mergers, corporate contributions, participations exchange, etc.);
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analysis and in-depth investigation of the various issues pertaining to corporate residence, in the light of domestic and treaty provisions as well as any applicable EU principles.
Avoid unnecessary risk. Our Teams will help you avoiding many of the pitfalls of setting up business in a new country, while helping mitigating risk in the expansion process.
Some of our services include:
- Management of local and regulatory compliance duties regarding taxation, licensing, employment, immigration, payroll issues;
- Permanent Establishment Assessment/Checklist;
- Advice related to relocation – (considering the potential impact on operational, legal and tax issues of the business);
- Outsourcing.
Tax Treaties/ Exchange of Information
Crowe Valente team renders consultancy services and professional assistance on EU and international tax issues involving multinational enterprises and corporate groups on the following aspects:
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restrictions, advantages, application scope of Double Tax Treaties;
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implications linked to the existence and the application of bilateral or multilateral treaties regarding information exchange matters.
The team also provides assistance to governmental authorities in negotiations of bilateral and multilateral agreements between/among States and between/among States and supranational institutions on the following matters:
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elimination of double taxation;
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enhancement of investments;
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information exchange, tax transparency and international administrative cooperation.
We carry out substantial and ongoing policy-making activities in all EU and international tax areas, through the active participation of working groups established with EU institutions, the OECD, and other important organizations and associations operating on a supranational level.
Within the current international landscape, monitoring tax policy developments, planning and compliance assume a crucial importance in the board room, in order to minimize tax risks.
Our Tax Policy Team renders consultancy services and professional assistance on some of the following aspects.
Updates/advice on expected regulatory changes as well as on topics related to Base Erosion and Profit Shifting, (hereinafter, “BEPS”), such as:
- Monitoring of BEPS related implemented measures domestically and worldwide, analyzing their implications for Taxpayers and companies
- Preparation of BEPS related check-lists and specific materials to provide clear and simple explanations to our clients on BEPS implications as well as bespoke in-house training
- “BEPS-proof” assessment and compliance with the new requirements of the ever- evolving tax framework, both in Italy and abroad (also by focusing on their structure, their value chain and operations)
- Reviewing defense strategies of a company/group–for risk prevention or mitigation o Drawing up Permanent Establishment Risk Exposure Analysis/Report
- Focus on the digital economy initiatives and planning ahead
We were shortlisted both in 2018 and in 2016, by International Tax review (ITR) for the European Awards - European Tax Policy Firm of the Year (2015) and (2017) among the big Players of the Tax & Legal market.
The “Corporate Tax” team renders consultancy services and assistance on direct and indirect tax matters pertaining to multinational groups and enterprises as follows:
- support in the set-up phase;
- analysis and in-depth examination of tax impacts connected to business development;
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analysis of tax treatment of income flows;
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assistance and support in all procedures relating to the incorporation of companies and further investigation on tax-derived consequences;
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analysis and in-depth investigation of topics and tax implications relating to national extraordinary operations (i.e., mergers, de-mergers, corporate contributions, participation exchanges, etc.);
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analysis and management of tax risks entailed by internationalization operations of multinational enterprises, by means of the drafting and submission of rulings;
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planning and management of intergenerational business transfers;
- examination and further investigation of VAT aspects and other indirect taxes.
We provide a range of corporate tax compliance services to support the needs of our corporate tax clients, ranging from a fully outsourced tax compliance and advisory function, through the assistance on preparation of tax figures for inclusion in accounts.
Our Services:
- Accounting
- Bookkeeping
- Tax Compliance Outsourcing
- Registered Office Services
- VAT compliance services
- Monitoring overseas group companies’ tax compliance
- Full international corporate tax compliance service through out other Crowe Member Firms
Our integrated team of accountants, lawyers, engineers will drive you though the process of understanding the requirements of the various incentive schemes available in Italy or abroad.
Depending on your needs, we can support throughout the entire process or some parts of it, including:
- Assistance accessing tax incentives available to both Italian and foreign companies based on location and dimension of the business and/or investment (super depreciation; iper depreciation, local incentives, etc.);
- Assistance in accessing R&D tax incentives;
- Available incentives for Innovation.
Tax reimbursements can be time consuming – our team of professionals will help you dealing with all the steps and procedures required to ensure that you succeed in getting your tax reimbursements on time.
Our Team is well experienced and include extensive experience also in view of our outstanding relations with the Tax Authorities and procedures.
There are many different types of tax rulings, including APAs, available to taxpayers in Italy. First, there are advance agreements for enterprises with international activities (advance agreements), including (i) unilateral, (ii) bilateral, and (iii) multilateral agreements between two or more related companies and the respective tax administrations in the countries where they are located.
Another option available is the use of advance tax rulings on new investments.
Furthermore there are various types of tax rulings that follow the same procedures for request and issuance:
- interpretative or ordinary rulings;
- controlled foreign companies rulings;
- anti-avoidance rulings; and
- advance clearing rulings.
Our Teams are well experienced and include extensive experience in view of our outstanding relations with the Tax Authorities and former results achieved.
Patent Box
Patent Box procedures require an in depth analysis of the value chain; analysis of economic decisions of the company as well as the preparation of benchmarking studies to identify the correct value of the IP at stake.
Patent Boxes will allow considerable savings by company and has proved to be a good incentive for new/current investments.
Ensuring the nexus approach is also important – in line with the latest policy recommendations at worldwide level.
Our team is well placed to better advise on the above mattes.
Our Team will help businesses and individuals determining the best tax strategies available, for an efficient tax structuring. Based on our specialization we are in a position to deliver expedient custom-tailored solutions for clients wherever there is a need for detailed structuring and planning.
Within the services provided, you will find:
- Deal Design
- Tax advice and support during business reorganization (merger, change of legal form, division, spin-off, etc.)
- Advice on tax optimization opportunities and new organizational structures
- Reviewing and designing contracts considering tax aspects (corporate contracts, articles of association, JVs, etc.)
- Tax advice in connection with transactions
- Advice for setting up, refinancing and liquidating companies
- Specific Advice/support with regards to advanced rulings from the fiscal authorities
- Assistance with the drafting of corporate by-laws: preliminary study and analysis of the various contractual options aimed at optimizing the costs/benefits ratio and at identifying the best possible corporate legal structure among the ones that are available:
- preparation of deeds of incorporation and corporate by-laws;
- drafting of preliminary and pre-contractual documents for the purpose of incorporating companies (term sheets, letters of intent, comfort letters, etc.).
- Drawing up and negotiating of national and international commercial agreements: analysis of contractual conditions and management of the negotiation phase of agreements, with special reference to deeds of sale of corporate participations, business transfer and rental agreements and lastly, to cooperation agreements between/among enterprises.
Management of extraordinary corporate transactions: legal consultancy on extraordinary operations in general (i.e., mergers, de-mergers, contributions, corporate acquisitions/transfers/rentals) as well as leverage buyout, management buyout and restructuring of corporate groups for entities operating in various economic and industrial sectors in Italy and abroad.
Support to the company’s management includes:
- legal support for the analysis and the definition of business strategies, as well as assistance with regard to any possible development lines of commercial strategies;
- crafting of the best possible corporate governance models, drawing up of governance and administration agreements as well as drafting of collateral agreements having the purpose to regulate relations between the various interested parties, even outside the company.
Creation and management of corporate procedures and policies: preparation of documentation to provide a valid support to the relevant operators involved, while minimizing, at the same time, any legal risks the company might incur and simultaneously ensuring compliance with the various applicable rules in force.
Legal opinions: this activity has the purpose of anticipating any legal/juridical outcomes and/or consequences as well as the validity and effectiveness of the corporate structures and initiatives and of the single texts and contractual clauses:
- drafting of ad hoc opinions pertaining to specific corporate law issues;
- drafting of opinions on the validity of specific corporate and inter-company initiatives;
- drafting of strategic corporate planning.
Our dedicated team of tax professionals will work closely with you throughout this process.
Corporate due diligence activities: analyses and investigations to assess companies’ value and conditions in order to avoid any potential detrimental effects, by identifying risk areas and latent or possible critical areas that might ensue:
- carrying out of due diligence and drafting of the reports relating to legal and/or juridical aspects linked to the operation;
- drafting of final reports pertaining to the company subject to investigation.
Assistance in the development of transfer pricing policies
- drafting of relevant documentation (Masterfile, country specific documentation and country by country reporting) according to relevant regulations;
- examination and definition of corporate policies related to transfer pricing;
- valuation of selected TP methods and verification of their application;
- valuation and implementation of “alternative” TP methods;
- assistance in the initiation of international ruling procedures;
- development of models for measuring and monitoring intercompany transactions;
- arrangement of procedures and authorization processes related to the regulation of intercompany relations.
Benchmarking
- benchmarking studies at national and international level, carried out consistently with OECD provisions, through well-established methodologies and through the use of the best informative tools and of the most accurate analysis instruments available on the market;
- preparation of specific economic and financial analyses in order to support intercompany transactions and business activities.
Assistance during the assessment procedures carried out by Tax Authorities and in the pre-litigation and litigation phases.
CbCR regulation poses some challenges for multinational groups:
- significant efforts, in terms of time and resources, required of such multinational groups that fall within the Decree’s application scope;
- extent of disclosure under such regulation, where sensitive data about the group’s organization and strategy are involved;
- Data consistency.
Companies which meet the CBCR requirements need to be ready to provide information on their global allocation of profit, taxes paid, and certain indicators of economic activity.
Our integrated team of professionals, including industry specialization, are particularly skilled in managing Financial Transfer Pricing projects, supporting our multinational clients in determining the correct and suitable arm’s length pricing for financial transactions within the group (design – implementation – defense/risk management).
Our team of experts provide assistance and support on the design or review of their TP policies in order to manage financial flows within the group, analyzing companies’ ratings, intra-group financing (loans, cash-pooling, etc.), and assessing potential risks.
Depending on your needs, we can help you on:
- Determining the arm's length basis for transactions rewarding;
- Providing economic advice on the overall cross border intra-group pricing system selected;
- TP design/TP documentation;
- Performing the necessary equity and asset related valuations and pricing in the case of organizational restructuring;
- Delivering specialized advice in financial economics and transfer pricing to help defending a taxpayer's position in controversy/ negotiations with tax authorities.
Dispute resolutions are expected to increase within the current scenario and transfer pricing is one of the hot topic for tax administrations worldwide.
Many multinational Groups have been increasingly requesting our consultancy on International Rulings and Advance Price Agreements (both, unilateral and bilateral) in view of our outstanding relations with the Tax Authorities and former results achieved. We are also involved in several ongoing APA negotiations for leading multinationals.
Advance Pricing Agreements represent a proactive approach to handle controversy by investing in productive relationships with tax administrators, and secure the tax position avoiding disputes.
Crowe Valente team has a vast experience applying and negotiating APAs with Tax Authorities and includes sound transfer pricing knowledge which will be an asset to drive you through all stages of the APA process, towards its successful completion.
In view of the BEPS changes/recommendations, we developed special inter-relational arm’s length transfer pricing analysis (in which transfer prices reflect the company’s business and tax purposes), which interacts, in turn, with the group value chain and with its value creation.
Mapping and understanding the value chain of a group has become a critical element for every corporate Group (identification of key value-drivers within its industry sector, as well as identification of the value drivers (in combination with a “quantitative analysis”) from which the company’s major risks within its industry might derive.
Our special focus is on:
- Identification of key value drivers within a specific company and its industry, detailed analysis of the companies’ assets, functions and risks, assessment of the role of each group entity within the value creation process (definition of roles/responsibilities/risks).
- In addition, we combine the latter analysis with an analysis of the so-called “significant people functions” involved in creating key value within a company for a correct allocation of profits. Our Firm is supporting several groups in this innovative and brand-new field.
An Alignment among corporate governance, operating model and tax/Transfer pricing structure is as crucial as an alignment/ syncing of the group economic, legal and financial realities.
Any discrepancies in such alignment might trigger additional tax liabilities.
Depending on your needs, our services might include:
- Focus on quantitative aspects of Value Chain Analysis
- Determine the need to change strategy and implementation
- Specific guidance on how to properly share the profit between investment and profit center
- Project management on value Chain Analysis
- Assessment on the alignment among corporate governance, operating model and tax/Transfer pricing structure
Our team assists large multinational corporations in examining and defending policies and procedures concerning transfer prices as well as in drafting the appropriate transfer pricing documentation. We support the top management of enterprises in the definition and in the management of transfer pricing policies also with reference to processes of corporate restructuring.
In particular, our "Transfer Pricing" team supports the client in the following activities:
Assistance in the development of transfer pricing policies:
- determination of Group Transfer Pricing Policy (TPP);
- definition of best possible Transfer Pricing Methods;
- drawing up of comparability analyses;
- drafting of relevant documentation (Masterfile, country specific documentation and country by country reporting) according to relevant regulations;
- examination and definition of corporate policies related to transfer pricing;
- valuation of selected TP methods and verification of their application;
- valuation and implementation of “alternative” TP methods;
- assistance in the initiation of international ruling procedures;
- development of models for measuring and monitoring intercompany transactions;
- arrangement of procedures and authorization processes related to the regulation of intercompany relations;
- profit allocation to permanent establishments, etc.
Our TESCM unit, through its integrated and multidisciplinary team followed several projects for key players of the market in the areas of supply chain planning, corporate restructuring and relocation of functions aimed at revisiting and improving value chain efficiency mainly in connection with extraordinary operations (i.e., M&A, etc.).
Our Team is focused on advising and supporting you aligning tax strategies with business initiatives and companies operating models.
Depending on your needs, we can support you on the:
- redesigning of business models in business restructuring projects (TESCM projects);
- drafting of operating procedures in support of intercompany transactions;
- centralization and optimization of intercompany services;
- focus on some centralized functions and services (such as R&D and coordination services);
- definition of inter-company flows dynamics;
- other projects involving Transfer Pricing and business restructurings;
- analysis and drawing up of inter-company agreements;
- drawing up of CCAs (Cost Contribution Arrangements); etc.
Tax risk and transfer pricing: our framework for the valuation of tax risk is based on the strategies used by Tax Authorities for planning audit activities. Based on the risk profile of the subjects involved and on the score assigned, it is possible to calculate a tax risk indicator. With reference to transfer pricing, by predicting the approach of the Tax Authorities, we are able to identify both the price that minimizes the risk for the group and the level of risk to which the group is exposed.
Crowe Valente team helps you recognizing tax and transfer pricing risks and to identifying methods for quantifying/managing transfer pricing risks, through specific risk assessment tools.
Crowe Valente and its affiliated Members have acquired a long-standing experience over the years in assisting clients in their relationship with the Tax Authorities with regard to all pre- and post-trial phases of litigation proceedings. In particular, our "Litigation" team assists clients from the very beginning of the tax assessment procedure with regard to the following aspects:
- structuring of the best possible defense strategy, as a whole, throughout the entire audit procedure;
- drawing up of explanatory memoranda;
- filing of administrative suspension requests and petitions for the refund of taxes erroneously paid, whether partially or wholly, that were not due;
- instituting tax assessment procedures for taxpayers’ acceptance of assessment;
- proposing and filing, where necessary, deeds of appeal with the so-called “Taxpayers' Watchdog” (i.e., a collective body set up with every regional office of the Italian Revenue Offices with the task of protecting taxpayers and defending their rights).
Crowe Valente takes charge of taxpayers’ defense throughout the entire litigation phase, handling all relevant documentation such as the drawing up of deeds of appeal and the collation of any related annexes.
Furthermore, the “Litigation” team is also in charge of drawing up and discussing any supplementary and/or explanatory memoranda, counter-deduction deeds, judicial collection suspension requests, including the filing of deeds of appeal, by intervening in hearings before the various competent Provincial and Regional Tax Courts.
We are well experienced in all phases of the tax dispute iter – from dispute prevention through pre-transaction analysis through to resolution of disputes.
Crowe Valente takes charge of taxpayers’ defense throughout the entire litigation phase, handling all relevant documentation such as the drawing up of deeds of appeal and the collation of any related annexes. Furthermore, the “Litigation” team is also in charge of drawing up and discussing any supplementary and/or explanatory memoranda, counter-deduction deeds, judicial collection suspension requests, including the filing of deeds of appeal, by intervening in hearings before the various competent Provincial and Regional Tax Courts.
We provide all the assistance required during the assessment procedures carried out by Tax Authorities and in the pre-litigation and litigation phases. Our negotiation skills, along with our excellent and long-established relations with the Italian Revenue Office (i.e., methods, time-frames, approach and other key aspects), are all fundamental elements to optimize relations between our client and the competent Tax Office in order to achieve successful outcomes throughout the negotiation phase with the Tax Authorities) and within the litigation phase.
One of our key strengths is the fact that our team includes besides lawyers, CPAs and Tax consultants, but also economists, engineers, mathematicians, which contribution is means added value for certain activities (such as value chain analysis; strategy and business optimization, valuation activities, transfer pricing, but also dispute resolution), with an in-depth knowledge of different sectors and industries.
We are used to address complex cases, involving substantial figures and related to key market players – our TP litigation team has an excellent winning-rate of cases at all Court levels.
We have been distinguished by International tax review in 2017 as Best Italian Transfer Pricing Firm of the Year by ITR European Tax Awards.
Our services include:
- Assistance in preliminary litigation proceedings (check-ups);
- Assistance in tax and criminal tax litigation;
- Assess the economic merits of tax authority positions;
- Assessing the purpose of data tax authorities’ requests;
- Challenge benchmarking studies.
We are experienced and frequently involved in complicated business litigation, approaching the matter always with a through knowledge of the law but also with a business-mind approach.
Our services include:
- Assistance to takeover defense – defense support on disputes over a target company’s resistance to an acquisition offer;
- Support in the event of breach of transactions;
- Assistance in and management of conflicts connected to agreement performance:these activities are linked to the handling of litigation matters with particular focus on ADR (i.e., alternative dispute resolution) methods for controversies that do not involve traditional jurisdictional bodies and that ensure a prompter and more reserved resolution of any conflicts that might have arisen:
- management of the conciliatory phase aimed at reducing any consequences that might have ensued from non-compliance such to avoid litigation; drafting of defense deeds connected to the agreement.
Our team of dispute resolution experts are ready to support you with regard to prevention, management and dispute resolution in connection with indirect taxes.
The right approach from the early beginning may engender positive outcomes.