Tax seminar on economic activity and major shareholding in Italy

02-12-2005
ECNL offered the perspective from the new EU Member States on the topic.

On December 2, 2005, ECNL participated in a tax seminar on Economic Activity and Major Shareholding -- What Is at Stake for Foundations? in Turin, Italy. The tax seminar was organized by the European Foundation Centre (EFC) and hosted by the Fondazione CRT - Cassa di Risparmio di Torino.

Mr. Andrea Comba, President of the Fondazione CRT, and Mr. Dario Disegni, from the Compagnia di San Paolo and Vice Chair of the EFC delivered opening remarks. Mr. Simon Hebditch of the Charities Aid Foundation and Chair of the EFC Tax Task Force introduced the first panel. The first panel focused on two intriguing cases now before the European Court of Justice (ECJ). In one case, the ECJ is reviewing whether national tax breaks for public benefit foundations that undertake economic activity can be in conflict with EU Competition law. In a second case, the ECJ is reviewing whether a principle of German tax law (that the tax exemption for public benefit organizations does not apply to foreign public benefit organizations, which have their registered office and/or governance structure outside Germany) can be in conflict with the EU Treaty, and in particular the Freedom of Establishment, Freedom of Movement, and Free Movement of Capital. The Court's decision in the former case is expected soon. Chiara Burberi (Head of the Holding Department of Unicredit), Tommaso Di Tanno (Di Tanno e Associati) and Marco Parlangeli (Fondazione Monte dei Paschi di Siena) participated in this panel presentation. The Seminar also examined various approaches in the EU Member States and beyond regarding the ability of foundations to engage in economic activities and the tax treatment of income from economic activities. Hanna Surmatz of the EFC presented highlights of the EU regulatory approaches. Carsten Carstensen of Ernst and Young Foundation gave a comparative overview of the issue in Germany, the UK and the US.  And Ana Sastre of Fundacion ONCE presented a case study on the work of this Spanish foundation. A final panel addressed public benefit purpose foundations as major shareholders in companies, with perspectives from Italy, Finland and Belgium, as offered by Paavo Hohti of the Council of Finnish Foundations and Ludwig Forrest of the King Badouin Foundation.