Italy’s finance department has issued guidelines on applying the general anti-avoidance rule (GAAR) under article 10-bis of Law No. 212 of 27 July 2000 on 27 February 2025.
The document outlines the abuse of law doctrine and examines the key elements of the GAAR introduced by Legislative Decree No. 128 of 5 August 2015. It provides guidelines for applying it consistently with its purpose while respecting the taxpayer’s contractual choices, including those allowing legitimate tax advantages.
The guidelines also mention that taxpayers can select from lawful tax regimes or transactions with different tax implications.
The document highlights the residual nature of the GAAR and offers clear guidelines on tax advantages, undue benefits, complex transactions, and economic substance.
