Transactions with blacklist companies: and of the proofs in order to obtain cost deductibility.

The Tax Commission of the Italian Region Umbria, with the sentence no. 159/3/2017 clarified the scope of the provisions of art. 110 Tuir (provision in force until 31 December 2015, before the amendments made by the 2016 Stability Law - Law 208 / 2015-).

 The judges decided the costs related to the operations in the black countries incurred by an Italian company, are deductible if a double condition is respected:

• firstly, the entrepreneur should demonstrate that the foreign provider is conducting a real business activity, proving that (according  to the principles of good faith and collaboration between the Tax and the contributor, ex art.10, co.1, 212/2000) he has done everything in his power to provide evidence about blacklist supplier activities.

On this point, the Umbria Tax Commission agreed with the Regional Directorate of the Piedmont Revenue issued in 2002: the prove that the foreign companies are mainly carried out in the commercial field can be demonstrated by documents as: "statute, registration with the local companies register, published balance-sheets, number of employees"; in this verification, other information such as telephone contacts, e-mails of users located in the suppliers country, existence of the current account are not always relevant, cause they are linked to an entrepreneur's "autonomous and unquestionable management choice".

In consideration of the above, it will not be necessary to carry out an in-depth research on "all the activities conducted by the supplier". This prove would be almost impossible for a third party.

• secondly, the tax-payer have to prove economic convenience related to the operation with the blacklist  company.