For the purposes of determining the business income of entities other than banks, other financial companies, and insurance companies, the tax treatment of expenses arising from the “definitive” uncollectibility of receivables (so-called credit losses) is governed by Article 101, paragraph 5, of the Italian Tax Code, according to which credit losses are deductible from business income (without limits and using an analytical mechanism) if they result from certain and precise elements and, in any case, if the debtor is subject to insolvency proceedings.