On 6 February 2023, the Italian Supreme Court issued its judgment in case No. 3591/2023 ruling that the losses of a demerged company shall be transferred to the beneficiary companies of the demerger in proportion to their respective quotas of the transferred book net equity (patrimonio netto contabile). The Court then added that the demerger of the consolidating company does not interrupt the tax consolidation (a regime in which the newly formed beneficiary company will not participate), but the beneficiary company will also assume those losses on a pro-rata basis.
Originally published by March, 2023
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