The Italian Supreme Court recently issued two related decisions in regard to the withholding tax rate on dividends paid from Italy to the Netherlands. The cases involved two Dutch banks that received dividends from Italian companies in the tax years 2005, 2006, and 2007. When the dividends were paid, the paying companies withheld tax at a rate of 15% in accordance with Article 10 (Dividends) of the 1990 Italy-Netherlands tax treaty. Neither bank qualified for potentially lower rates under the treaty or an exemption under the EU Parent-Subsidiary Directive. However, the banks argued that they should qualify for a refund...