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Companies seeing benefits and headaches of Italian documentation regime

February 16, 2011

Salman Shaheen TPW

The Italian Austerity Package, issued in May last year, gave companies the chance to provide transfer pricing documentation to avoid audits or face penalties ranging from 100% to 200%.

Unlike many other jurisdictions, documentation is not mandatory, but, almost a year later, the new system, which gives businesses the option of preparing and maintaining documentation to ensure protection from tax penalties, has received a mixed reaction from taxpayers.

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