The Italian Supreme Court rules that a non-profit banking foundation is not eligible for a tax exemption because an Italian law permitting the tax break for non-profits must be disapplied in cases where the entity is clearly an undertaking within the meaning of Article 107 TFEU (Agenzia delle Entrate / Fondazione Cassa di Risparmio di Carpi)

On 4 February 2010, the Supreme Court delivered Decision No. 2592 in which it upheld the appeal brought by the Italian tax authority (“ITA”, Agenzia delle Entrate), the entity responsible for collecting taxes and revenue in Italy, against a decision issued by the Regional Tax Court of Emilia Romagna, which had rejected the ITA’s appeal against Provincial Tax Court of Carpi Decision 434/04/01. Background & facts of the case Fondazione Cassa di Risparmio di Carpi (“FCRC”) is a private, autonomous, non-profit banking foundation that promotes social, cultural, and economic development in the municipalities of Carpi, Novi di Modena and Soliera. In the case under