When carry-forward stops: change of control, change of business and the vitality test — Tax losses in Italy: carrying them forward

Test yourself

Question 1 of 6

When does the restriction in article 84, paragraph 3, apply?

When the voting majority changes, even with nothing else changingWhen the business changes, even without any saleWhen both the voting majority and the main activity changeWhen the company has had losses for more than five years

Question 2 of 6

Does a change of business made two years before the majority sale count?

No, only later changes countYes, the window includes the two preceding periodsOnly if it involves a branch of a businessOnly for partnerships

Question 3 of 6

The majority of a company with a calendar financial year is sold in November. Which losses are caught?

Only those at 31 December of the previous yearAlso those standing at the end of the period in progress at the transfer dateOnly future lossesNone

Question 4 of 6

What does the vitality test in paragraph 3-bis check?

That net equity is positiveThat core revenue and staff costs exceed 40% of the average of the two preceding yearsThat the company has at least five employeesThat profit exceeds 40% of revenue

Question 5 of 6

With a sworn valuation, how is the ceiling on losses carried forward calculated?

Economic value of net equity minus twice the contributions and payments of the last 24 monthsBook net equity plus paymentsEconomic value of net equity with no adjustment40% of net equity

Question 6 of 6

Which other carried-forward amounts face the same restrictions as losses?

VAT creditsExcess interest expense under article 96, paragraph 5, and excess ACEClosing inventoryTax advances paid