Mediolanum makes peace with the Italian tax authorities, closing the dispute related to the transfer price practiced in relations with the Irish subsidiary Mediolanum International Funds. The group will pay higher taxes for a total of 120,2 million euros plus interest.
This figure, defined following the start of the international arbitration procedure by the companies involved, includes all the disputed years (from 2005 to 2014). A press release from the group underlines that "considering the provisions already made in recent years, the additional cost charged to the current year is 31,2 million".
It is also added that "in consideration of the evaluative nature of the disputes and the diligent work and transparency of the companies involved in the matter of documentary burdens, the Revenue Agency has acknowledged the non-application of the sanctions".
In addition, the Mediolanum group, through its Irish subsidiary Mediolanum International Funds, "will activate the request to the Irish tax authority of the higher taxes paid in that State for approximately 41,5 million". The decision to "come to a settlement of the ongoing dispute with the Revenue Agency - concludes the note - is motivated by the desire to avoid the continuation of a lengthy procedure over time, thus eliminating the uncertainty linked to the outcome of the dispute".
Massimo Doris, CEO of Banca Mediolanum, commented: “We are very satisfied, we have definitively closed a deal that had been dragging on for years. Now all we need is recognition of the tax credit by the Irish Revenue Agency: if it arrives before the closing of the financial statements, against the provisions already made, we will recover 10,3 million over the 2015 financial year”. balance sheet, against the provisions already made, we will recover 10,3 million over the 2015 financial year”.
