Tax Treaty Case Law around the Globe 2022
1. Aufl. 2023
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27.1. Introduction
The two cases decided by the Italian Supreme Court (Corte di Cassazione) concern article 19(1)(a) of the Italy-United Arab Emirates (UAE) Income Tax Treaty (1995) on government service. The question that landed on the Supreme Court’s docket was how article 19(1)(a) of the treaty allocated taxing rights between Italy and the UAE in relation to lump-sum travel allowances that the government (Ministry of Defence) of the UAE paid to two Italian resident pilots of Italy’s military air force who were seconded to the UAE to train the local air force.
The two cases discussed in this chapter concern two different Italian pilots, who were both resident of Italy and employees of Italy’s Ministry of Defence. The fact patterns are identical, and the two decisions of the Supreme Court are consistent with each other. Finally, there are at least two other identical cases involving other Italian pilots that are currently pending before Italian courts.
27.2. Facts of the case
Two Italian pilots of Italy’s military air force were temporarily sent to the UAE to act as flight instructors of the local aerobatic military team pursuant S. 320to a technical intergovernmental agreement between t...