Italian Ruling Allows Use of ‘Substitute Tax’ in Secured Refinancing Transactions


Mario Martinelli addressed a recent private ruling by the Italian Revenue Agency which upheld a lower “substitute tax” in certain refinancing loans. The ruling was issued for an EU bank client of Mr. Martinelli to clarify a 2015 court decision which he said had created “a lot of uncertainty and perceived risk” for an energy refinancing deal by the bank. By creating a favorable tax treatment for the transaction, the ruling helped achieve the necessary guarantees for the lender at an acceptable cost.