Government Pension Investment Fund v Revenue Agency Appeal: No 15089/2013 RG

A Japanese pension fund, the Pension Welfare Service Public Corporation, invested in shares in an Italian company. All assets of the pension fund were held by a Japanese credit institution as trustee: in this case the credit institution acting as the trustee was the Nippon Trust Bank Ltd. The trustee was required to hold the assets through a US limited partnership of which it was the limited partner. Dividends were paid by the Italian company, subject to a domestic withholding tax at 32.4% on dividends paid in 1998. The pension fund applied for a refund of the withholding tax to the level of 15% provided for by art 10 of the Double Tax Convention between Italy and Japan concluded in 1969. The Italian Revenue Agency rejected the application for repayment of the withholding tax; the Turin Tax Court held in favour of the taxpayer; but the Piedmont Tax Court of Appeal held in favour of the Revenue authorities. The pension fund appealed to the Supreme Court of Cassation, which upheld the appeal.