Tax Settlement in Pre-insolvency Procedures in Italy
By Bernadette Accili, Bruno Cova, Axel Schilder and Allard de Waal
On April 18, 2008, the Inland Revenue issued the circular letter No. 40 (hereafter Circular 40/2008) interpreting the provision of art. 182-ter of Law March 16, 1942 No. 267, the so-called Bankruptcy Law (hereafter BL) on the settlement between the Tax Authorities and taxpayers in pre-insolvency procedures.
Circular 40/2008 gives the proper legal framework in coming to a settlement with the Italian Tax Authorities in the said context, thus providing a useful tool and opening new real business opportunities in the Italian distressed and restructuring market.