The reorganization of a Corporate Group and the exercise of income Tax Consolidation Regime doesn’t not procure undue tax benefits and tax avoidance
The Italian Tax Revenue Agency with Resolution n. 40/E of 17 May 2018 stated that when the taxpayer, through legitimate transactions, procure tax benefits there is not abuse of the law.
In this case the Corporate Group elected domestic tax consolidation and with this transaction produced significant tax economic effects.
The rule is that transactions which produce tax benefits may not be considered tax avoidance when they comply with tax laws principles.