The concept of ‘Agency PE’ in a recent Italian Supreme Court decision

Valerio Cirimbilla is a qualified lawyer and a tax consultant in Rome. He is a senior associate at ‘Di Tanno e Associati’ a leading Italian law firm awarded as the best Italian tax law firm in 2007 and 2009. His practice focuses on domestic and international tax law, corporate finance and M&A transactions as well as tax litigation. He received an LL.M. degree from Queen Mary University of London, a law degree in Italy from ‘Università la Sapienza’ and a master in Italian taxation from ‘Scuola Superiore dell’Economia e delle Finanze’.

Ruling No. 8488

On 9 April 2010, the Italian Supreme Court (Corte di Cassazione) in Ruling No. 8488, found in favour of the Italian Revenue Agency, stating that a person acting in Italy as an agent having the power to conclude contracts on behalf of a foreign enterprise constitutes a permanent establishment (PE) in Italy.