Despite the enormous diversity and complexity of financial instruments, the current taxation of hybrid financial instruments and the remuneration derived therefrom are characterized by a neat division into dividend-generating equity and interest-generating debt as well as by a coexistence of...

1. Introduction; Mohyedine Hajjar -- Introductory Part 1: Legal Framework of Islamic Finance in EU Legislation -- 2. Financial Undertakings, Sharīᶜa Rules and the Internal Market Framework Challenges and Opportunities; Gabriella Gimigliano -- 3. Islamic Insurance and European Union Legal...

This article describes the new ACE-type system implemented in Italy since 2012. The authors first show that this system reduces but does not eliminate the financial distortion due to interest deductibility. Using a dataset of Italian companies, the authors analyze the impact of this relief on...