Watson Farley & Williams (“WFW”) represented Società Gasdotti Italiani S.p.A. (“SGI”) in its appeal before the Italian Supreme Tax Court against notices of assessment concerning the 15% registration tax levied on deeds of easement on agricultural land.
The Supreme Tax Court, agreeing with WFW’s arguments, made three rulings on 2 September 2024 (rulings 23489, 23494 and 23512) which reaffirmed that the deeds concerned do not constitute a transfer of ownership but rather a concession of a right of use and are therefore subject to a 9% registration tax, as stated in Article 1 of the Tariff attached to the Presidential Decree 131/1986.
The Court confirmed that it is therefore incorrect to apply the registration tax at the rate of 15% on the basis of its interpretation of the term “transfer” used in the reference provision, highlighting that the term clearly does not apply to cases of the right in rem of use, as previously defined by the same Revenue Agency in Resolution n. 4/E of 15 January 2021.
SGI is a prominent company in the Italian energy sector, recognised as one of the largest independent natural gas transmission operators in Italy.
The WFW Italy multidisciplinary team that advised SGI was led by WFW Administrative and Regulatory Partner Giannalberto Mazzei, working closely with Tax Senior Associates Alfredo Guacci Esposito and Administrative and Regulatory Senior Associate Cesare Fossati.
Giannalberto commented: “This ruling is also relevant to easements on agricultural lands that host renewable energy infrastructures. Additionally, it underscores the need for careful tax planning and the proper management of easements in rem to support the development of installations”.
