For the purposes of the corporate income tax (IRES),it is possible to deduct the higher registration fee paid by the pending tax payer as a result of the recharacterization of business contribution followed by the tranfer of its shares into the transfer of that business. Conversely, the same deduction does not apply for the purposes of the regional business activity tax (IRAP).
This is what the Central Regulatory Department of the Italian Tax Agency stated in response to the appeal filed by a non IAS adopter company, related to the treatment applicable to the registry tax and to the deriving interests paid as a result of the aforesaid requalification.
In the present case, the applicant challenged the payment notices of the higher taxes required by the competent authority, that had rejected the appeal. The company wished to continue the legal process by lodging an appeal. Once the effects of the judicial suspension ended, the company had to pay the required amount, by registering the expenses as«E21-Oneri straordinari» (extraordinary charges) in the income statement of the fiscal year 2013. Consequently, the company asked the treatment to be applied to taxes and related interests for the purposes of both IRES and IRAP.