On 5 November 2007, the Italian tax authorities issued Ruling No. 312 dealing with the interpretation the new Italian rules on deemed residence (Art. 73(5-bis) of Presidential Decree No. 917/82 (Italian Income Tax Code – ITC)), and Art. 4(3) of Italy-Netherlands tax treaty (DTT).
(a) Facts. A Dutch holding company (the Holding) has its legal and administrative seat in Amsterdam since 1996. Inter alia, the Holding controls an Italian company. Pursuant to the new Art. 73(5-…