The Italian Supreme Court Decision in the Cathay Pacific Airways Case: Indirect Cost Allocation to Branches of Foreign Airlines

Journal
Gusmeroli, M.
Italy
Bulletin for International Taxation 2011 (Volume 65), No. 10
PriceUSD 45

This Italian Supreme Court case considered the documentation requirements necessary to sustain a general expenses recharge to the Italian branch of a foreign airline. The Court held that the head office financial statements (and the resulting internal apportionment) could be accepted, provided that these are subject to an auditors’ report.