ECJ-Recent Developments in Direct Taxation 2013

S. 118I. Introduction

The preliminary rulings (C-344/13 and C-367/13) referred by the Provincial Tax Court of Rome (hereinafter also the “Referring Court”) raise the issue of compatibility with the freedom to provide services (set forth in Article 56 of the Treaty on the Functioning of the European Union, hereinafter “TFEU”) of the Italian tax regime applicable to winnings obtained by Italian resident individuals from live casinos located in other Member States.

This paper aims to provide a critical overview of the issues raised by these preliminary rulings. In this respect, it first illustrates the relevant legislation (§ II) as well as the relevant facts (§ III). Furthermore, it provides an analysis of the referring court’s orders (§ IV). Finally, the last section (§ V) contains some conclusive statements on what the position of the Court of Justice of the European Union (“ ECJ”) might be with regard to the preliminary rulings of the Provincial Tax Court of Rome.

II. Relevant legislation

Under Article 67(1)(d) of Presidential Decree no. 917 of 22 December 1986 (hereinafter “ITC”), “Miscellaneous income”, includes “winnings paid from lotteries, prize competitions, games and betting organize...