Executive summaryItaly’s Supreme Court (the Court), in decision n. 14756 of 10 July 2020, relied on the principles adopted by the Court of Justice of the European Union (CJEU) on the Danish Cases1 to clarify certain prerequisites for the application of the withholding tax (WHT) exemption under Directive 2003/49/EC (Interest and Royalty Directive or IRD) and established the conditions for a foreign sub-holding to meet the beneficial owner (BO) status.Detailed discussionIn the case brought before the Court, the Italian Tax Authorities (ITA) challenged the application of the WHT exemption under the IRD2 on interest paid by an Italian company to its Luxembourg...