ITALY Law and Practice Contributed by: Paolo Ludovici and Andrea Mirabella, Gatti, Pavesi, Bianchi, Ludovici
(EUR15). Any minority discount applied in negotiation is not relevant for transfer tax purposes. In addition, transfers of shares in Italian joint stock companies may also be subject to a tax on financial transactions (the so-called “Tobin tax”) of 0.2% (or 0.1% if the transfer takes place in regulated markets and multilateral trading systems) due from the pur - chaser. The taxable base is the value of the transac - tion, ie: • the value of the net balance of daily settled trans - actions related to the same financial instrument and concluded on the same business day by the same person; or • the price paid. In Italy, disputes over inheritance matters may lead to claims of violation of the compulsory share (see 2.3 Forced Heirship Laws ). A violation of the compulsory share may occur, for example: • when a testator has disposed of more than the freely disposable portion; or • where other heirs with forced heirship rights receive more than they are entitled to (for example, through donations received during the lifetime of the deceased). Even contributions to a trust may in principle violate the Italian forced heirship rules, for example, when one of the forced heirs is not included among the ben - eficiaries of the trust, or in the case of a discretionary trust in which the trustee is granted authority both to identify the beneficiaries and to determine the extent of the distributions to be made. In this regard, the Italian Supreme Court of Cassation, in its Judgment No 5073 of 17 February 2023, held that a trust which infringes the rights of forced heirs ( legittimari ) is not null and void. Rather, any forced heir who considers their rights to have been prejudiced 5. Wealth Disputes 5.1 Trends Driving Disputes
may seek judicial relief by bringing an action for reduc - tion ( azione di riduzione ). Given the increased international mobility of families, recent years have seen cases aimed at ascertaining the law applicable to succession. 5.2 Mechanism for Compensation When the right of a forced heir to his/her compulsory share of the deceased’s estate is violated, the heir may file an action for the reduction ( azione di riduzi- one ) of the testamentary provisions and/or the dona - tions made by the deceased during his/her lifetime. If successfully brought, the action for reduction may be followed by an action for “restitution” ( azione di restituzione ) against the beneficiaries of the disposi - tion. To avoid litigation, the parties may come to an agree - ment on reinstatement of the violated compulso - ry share: on the one hand, the aggrieved heir may renounce the lawsuit; or on the other hand, the coun - terparty may transfer, in mitigation of any claim, assets of his/her own or of the inherited estate. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries Fiduciary Companies Corporate fiduciaries are a widely used in Italy because they enable various objectives to be achieved, such as: • confidentiality, as the assets are formally in the name of the fiduciary; and • tax simplification, as the fiduciary company acts as a tax withholding agent, and income from assets held in its name does not have to be reported on the principal’s tax return; likewise, foreign assets held in the fiduciary’s name are not subject to tax monitoring obligations (no filling out of the RW Form). Corporate fiduciaries carry out activities of administra - tion and management of assets, although they do not
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