Tax decree / Encoded abuse of the right – Il Sole 24 Ore

Tax decree / Encoded abuse of the right – Il Sole 24 Ore

In the text contains a basic definition: there is an abuse of the right when you are in the presence of transactions without economic substance that make undue tax advantages as main consequence of the operation. For there to be, then, an ‘abuse of rights’ it must be satisfied both these conditions. If a taxpayer puts in place of operations exclusively to obtain a tax advantage legitimate (and thus when the transaction has no economic substance if not that the tax advantage) one can not speak of abuse of rights. Moreover, according to the text of the decree, the abuse may be made only when the tax advantages (illegitimate) can not be challenged on the basis of other violations: for example, when it comes to fireworks put in place for the purpose of tax evasion real own, they constitute evasion and abuse of the right; all times when you are in the presence of phenomena simulators, alteration, fraud, you are not in the field of abuse of rights, but in that of ev asion.