{"id":116054,"date":"2025-10-06T11:57:25","date_gmt":"2025-10-06T11:57:25","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=116054"},"modified":"2025-10-06T11:57:51","modified_gmt":"2025-10-06T11:57:51","slug":"italy-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/italy-tax-disputes\/","title":{"rendered":"Italy: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-116054","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-italy"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Maisto e Associati<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Maisto-e-Associati-logo-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Maisto e Associati<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Maisto-e-Associati-logo-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in Italy<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Natural person: Tax Code is attributed by the Municipalities (through the tax authorities database called \u201cAnagrafe Tributaria\u201d) at birth when a person is registered to the National Register of the Resident population or in case of non-resident person upon request to the tax authorities (e.g., in case of purchase of real estates in Italy). VAT code has to be requested only in case of entrepreneurial and professional activity relevant for VAT purpose.<\/p>\n<p>Companies and other entities: Tax code and VAT code have to be requested to the tax authorities when incorporated under Italian civil law or, in case of foreign companies, when a relevant economic activity starts in the territory of the State.<\/p>\n<p>Taxpayers are identified for tax purposes through the Tax Code (\u201cCodice Fiscale\u201d) for Direct taxes purposes and through a VAT Number (\u201cPartita IVA\u201d) for VAT purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment \u2013 or is there a system of self-assessment where the taxpayer makes their own assessment which stands unless checked?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax returns are checked by the tax authorities every year through automatic controls in order to verify the formal correctness of the data included in the tax returns on the basis of a data crossing process. In addition, tax returns on a sample basis (identified through statistical tax risk analysis) are subject to a formal control that verifies the material correspondence of some data included in the tax returns with the supporting relevant documentation. Finally, tax returns can be checked during a general tax audit that might start by the issuance of a Questionnaire or by the visit at the premises of the taxpayer by tax authorities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend the taxpayer\u2019s return after it has been filed? Are there any time limits to do this?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers can amend the tax returns filed within the term of the statute of limitation, also when a Tax Report or a Questionnaire has been served (see reply 6); the taxpayer is not allowed to amend the tax return after a tax assessment has been issued on the same item to be amend.<\/p>\n<p>If higher taxes arise following the amendment of the tax return, taxpayers can pay the relevant taxes, interest and penalties due for the unfaithful filing of the tax return in case of amendment through a self-voluntary regularisation (\u201cRavvedimento operoso\u201d). In case of voluntary regularisation penalties can be reduced depending on when the regularisation takes place compared to when the original declaration was filed (e.g., reductions range from 1\/10 to 1\/4 depending on the timing of the regularisation).<\/p>\n<p>When the taxpayer amends the tax return the statute of limitation will restart with respect to the item of the income that has been amended.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods for a tax authority to challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities can challenge the income and correspondent taxes declared by the taxpayer through the following different methodologies: (i) analytic methodology (e.g., checking the accounting records and tax register during the visit of the taxpayer\u2019s premises), (ii) inductive methodology (e.g., through presumptions even if these latter are not \u201cserious, precise and consistent\u201d) and (iii) analytic-inductive method (mix of the above-mentioned methods).<\/p>\n<p>In addition, tax returns can be challenged also through the so-called synthetic methodology (e.g., statistical indicators).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits that apply to such challenges (disregarding any override of these limits to comply with obligations to relief from double taxation under a tax treaty)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The statute of limitation of the tax authorities\u2019 power of assessment is (i) in case of omitted tax return (e.g., unknown taxpayer), 7 years from the 31 December of the year in which the tax return should have been filed and (ii) in case of unfaithful tax return, 5 years from the 31 December of the year in which the tax return has been filed.<\/p>\n<p>According to the recent amendments of the Law No. 219\/2023 in most cases tax authorities must serve a preliminary assessment (\u201cSchema d\u2019atto<em>\u201d<\/em>) before issuing the final assessment.<\/p>\n<p>By the preliminary assessment tax authorities inform taxpayers about the alleged challenges and allow the taxpayer to file within at least 60 days a defensive brief; the filing of the defensive brief is not compulsory.<\/p>\n<p>After the filing of the brief, if the challenges are not waived by the tax authorities, these latter must explain in the final assessment the reasons why they did not accept the taxpayer\u2019s arguments. In this context, if less than 120 days elapse between the deadline to file the defensive brief and the mentioned terms of assessment (e.g., 7 and 5 years) or if the deadline to file the brief is beyond the said terms of assessment, these latter terms are extended by 120 days from the deadline to file the defensive brief.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined in your law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Administrative tax law does not provide for a definition of tax fraud that comes up from the jurisprudence. Generally, the concept of that fraud is utilized almost in case of non-existing transactions.<\/p>\n<p>The concept of tax fraud is provided for criminal law purposes in case of use of documents concerning non-existing transactions or use of other artifices for the purposes of filing the tax return.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Does the tax authority conduct a criminal investigation with a view to seeking a prosecution and custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of a tax fraud, tax authorities apply higher penalties (for violation committed starting from 1 September 2024 (Law No. 87\/2024), 105-210% of the higher taxes assessed vis-\u00e0-vis 70%; for violation committed before 1 September 2024 (Law No. 87\/2024), 135-270% of the higher taxes assessed vis-\u00e0-vis 90-180%). Tax frauds generally trigger a criminal exposure.<\/p>\n<p>Criminal tax investigations are conducted by the tax police (not by tax authorities) appointed by criminal authorities (e.g., criminal prosecutor). These investigations are generally conducted also in order to seek a prosecution and custodial sentence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In practice, how often is a taxpayer audited after a return is filed? Does a tax authority need to have any justification to commence an audit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general terms the audit activity is at tax authorities\u2019 discretion and is almost based on a risk analysis criterion; therefore, there are not predetermined rules on how and when a taxpayer should be audited.<\/p>\n<p>For large business taxpayers (i.e., taxpayers whose yearly revenues are equal or exceed 100 million euro) the law provides that in principle \u2013 based on the outcome of a specific risk analysis \u2013 they could be audited every fiscal year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it in practice conducts audits?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities follow the rules under the Taxpayers\u2019 Charter (Law No. 212\/2000), which provides for the rights of the taxpayers vis-\u00e0-vis the tax authorities. The tax authorities shall inform the taxpayers of their rights at the beginning of the audit.<\/p>\n<p>The Ministry of Finance and the tax authorities issue general guidelines on the promotion of compliance, the risk analysis and the audit activities addressed to different categories of taxpayers (e.g., large, medium and small taxpayers, etc.). Moreover, the tax authorities issue statistical reports on the audit activities carried out each year.<\/p>\n<p>Recently, the European Court of Human Rights delivered its judgment on 6 February 2025 in the Italgomme Pneumatici Srl case no. 36617\/18, closely examined Italian rules governing access, inspections, and audits by tax authorities. In essence, the Court found that the national legislation did not sufficiently protect taxpayers\u2019 rights for two main reasons. First, access to the taxpayer\u2019s premises was permitted based on acts that were merely formal and lacked any real explanation or effective reasoning for the inspection. Second, taxpayers had no opportunity to challenge the legitimacy of these actions before a tax assessment was issued; therefore if a taxpayer believed that an inspection was unjustified or improperly conducted, there was no legal avenue to contest the inspection itself until after the authorities had already completed their evaluation.<\/p>\n<p>In response to the Court\u2019s findings, a new rule has been introduced into the Taxpayers Rights Chart. This rule requires that all access to taxpayers\u2019 premises by tax authorities must now be justified in detail. For example, tax inspectors must provide a clear and substantive explanation before entering a business, outlining the specific reasons for their inspection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compulsorily request information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities have powers to request information and documentation, also by visiting the taxpayer\u2019s premises and requesting and seizing any relevant documents, including e-mails. If the information and documentation requested is not delivered by the taxpayer, the latter cannot subsequently be allowed to use such information and documentation for defensive purposes (e.g., during the tax litigation) unless the failure to deliver was depending on force majeure causes.<\/p>\n<p>The use of the above powers could be challenged only by appealing against the tax assessment as the outcome of the information request process. As highlighted above, recently the European Court of Human Rights, in the Italgomme Pneumatici Srl case no. 36617\/18, found that the impossibility to challenge the legitimacy of the audit powers exercised before the\u00a0 tax assessment is issued did not comply with the European Convention of Human Rights.<\/p>\n<p>The powers to request and collect information and documentation are broader in case of criminal investigation; in such latter case, the said investigations are carried out by the tax police.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the tax authority have the power to compulsorily request information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities have the power to request to third parties to deliver books and records or other documentation, as well as information from clients and suppliers, related to the taxpayer under audit; in such context, the attorney-client privilege is always granted.<\/p>\n<p>The use of such power could be challenged only by appealing against the tax assessment.<\/p>\n<p>In case of criminal investigation, the power to request information is broader.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An audit can be settled (without litigation) through a settlement agreement (\u201cAccertamento con adesione\u201d) with a redetermination of the claim and a reduction of the penalties applicable to 1\/3 of the minimum, calculated on the redetermined claim. The settlement agreement is binding in relation to the fiscal year assessed (both for the taxpayer and the tax authorities); however, the tax authorities could start a new audit if the first assessment settled was partial, new elements to ground the previous claim arise and the additional income assessable is more than 50% of the income settled and, in any case, higher than Euro 77.768.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>During the audit, the taxpayer can address claims to the Taxpayer\u2019s Guarantor (\u201cGarante del contribuente\u201d), which is a monocratic body regulated by the Taxpayers Rights Chart (Law No. 212\/2000), appointed by the President of the Tax Courts of second level, whose task is protecting the rights of the taxpayer and guaranteeing a trusted relationship between taxpayers and tax authorities. The Taxpayer\u2019s Guarantors can make recommendations to the tax authorities in respect of the mentioned Taxpayers Rights Chart and report cases of particular importance to the competent authorities.<\/p>\n<p>However, the Taxpayer\u2019s Guarantors cannot exercise binding powers.<\/p>\n<p>After the assessment is issued, any relevant irregularities can be challenged only by appealing against the tax assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, does the taxpayer have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The taxpayers always have the right to appeal against the assessment within 60 days from the service of the deed of assessment before the Tax Court of first level.<\/p>\n<p>In particular, taxpayers, within 60 days from the service of the deed of assessment, must serve the deed of appeal to the competent Tax Office and within the following 30 days must deposit the appeal to the relevant Tax Court of first level.<\/p>\n<p>In any case, the taxpayers can also file a revocation request (\u201cIstanza di autotutela\u201d) to the tax authorities, in order to ask the amendment or cancellation of the assessment. The filing of the revocation request does not suspend the mandatory term to file the appeal. The refusal deed\u00a0 \u00a0of\u00a0 revocation request can be appealed before the Tax Court in 60 days; in particular cases (i.e. mandatory revocation cases listed by the law) also the lack of the response (within 90 days from the filing of the revocation request) can be appealed before the Tax Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or judicial in nature (i.e. to a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of appeal, the competent authority is the Tax Court. According to a law enacted on 16 September 2022 and reforming the tax justice (Law No. 130\/2022), first- and second-instance Tax Courts will be progressively composed by professional judges.<\/p>\n<p>In any case, the taxpayers can also file a revocation request (\u201cIstanza di autotutela\u201d) to the tax authorities \u2013 which is an administrative body \u2013 in order to ask the amendment or cancellation of the assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The hearing is oral and public upon the request of one or both parties (e.g., the taxpayer and the tax office). At the end of the hearing or at least 7 days after the hearing, Tax Court must communicate to the parties the outcome of the judgment. The text of the decision is deposited within 30 days from the hearing (this deadline is not mandatory and, therefore, can be disregarded). Decisions are published. Other information concerning the appeal (not included in the decision) can be accessed by third parties only in case a legitimate interest occurs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The procedure is almost written but both parties might request the oral hearing. In general, there is no more than one hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no discovery rules similar to those applicable in common law jurisdictions. However, during the appeal procedure, parties shall submit the documents they want to use to support their defence within the deadline of 20 days before the hearing. New documents cannot be filed during the second degree unless the Tax Court of second instance believes they are essential for the decision or the party demonstrates that the lack of the deposit during the first degree was not due to its fault.<\/p>\n<p>Documentation requested by the tax authorities during the audit and not delivered by the taxpayer cannot be used in the appeal, unless the taxpayer files the requested documentation together with the appeal declaring that failure to provide it was due to force majeure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Based on the law reforming the tax justice (Law No. 130\/2022) witnesses are admitted testifying according to the Tax Courts discretion for the purposes of the decision and even without the agreement of the parties.<\/p>\n<p>The testimony is written according to rules provided by the civil procedural code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the burden on the taxpayer to disprove the assessment the subject of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>During the appeal against a tax assessment, the tax office shall prove the grounds of the assessment (which shall contain motivation of the claim) and the taxpayer shall disprove it.<\/p>\n<p>As to the appeal concerning the request of reimbursement, the burden of proving the right to the reimbursement is only upon the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is not a timing provided by law and it depends on the stage of the appeal and on the single court involved. Based on the most recent statistical data provided by the Ministry of Finance and by the Supreme Court, the judgment ends on average around 9 years: 1 year for the first instance judgment, 2.5 years for the second-instance court\u2019s judgment and 5 years for the Supreme Court judgment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Provisional payments are due as follows:<\/p>\n<ul style=\"padding-left: 0\">\n<li>1\/3 of the higher taxes assessed and interest pending the tax litigation before the Tax Court of first instance;<\/li>\n<li>up to 2\/3 of the higher taxes, interest and penalties in case of unfavourable decision of the Tax Court of first instance;<\/li>\n<li>100% of the amounts assessed in case of unfavourable decision of the Tax Court of second instance.<\/li>\n<\/ul>\n<p>In order to avoid the provisional payments, the taxpayer can ask for a suspension of the collection before the relevant Tax Court. The request can be filed together with the appeal as well as after, but no later than the first hearing. The suspension is granted by the Tax Court if the taxpayer demonstrates: (i) \u201c<em>fumus boni iuris<\/em>\u201d, i.e. the arguments of the appeal are well grounded prima facie and (ii) there is \u201c<em>periculum in mora<\/em>\u201d, i.e. a well-founded risk that the taxpayer may suffer by paying the amount requested. At its discretion the Tax Court, in order to grant the suspension may, also request a bank or insurance guarantee.<\/p>\n<p>Finally, after the decision of the Tax Court of second instance, pending the appeal before the Supreme Court, the taxpayer can request the suspension of the provisional payment (due in case of unfavourable decision) before the Tax Court of second instance; the suspension is granted if the taxpayer proves the <em>periculum in mora <\/em>only.<\/p>\n<p>Without any discretion by the Tax Courts the taxpayer is entitled to the suspension of the collection of penalties (the Tax Court) in case of a bank or insurance guarantee to cover such amount.<\/p>\n<p>In any case the effect of the suspension will end starting from the deposit of the decision at the end of the degree of the litigation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who can conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of appeal against assessments for higher taxes exceeding Euro 3.000, taxpayers shall be represented before the Tax Courts by a registered professional (attorney, accountant, labour consultant, etc.). Before the Supreme Court taxpayers can be represented only by an attorney that is included in a special register before the Supreme Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system where the \u201closer pays\u201d the winner\u2019s legal\/professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, the system where the \u201closer pays\u201d the winner\u2019s legal\/professional costs of an appeal apply, even if said costs shall be paid only when a final judgment occurs. The rule \u201closer pays\u201d can be derogated by the Tax Court; generally, the judges decide to offset the litigation expenses in case of particularly complex litigation or in case of an agreement between the parties. Moreover, litigation expenses must be offset by the Tax Court when a party wins due to documents filed only during the litigation proceeding.<\/p>\n<p>The amount of legal\/professional costs is determined discretionally by the judges and does not depend on the costs actually borne by the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution \u2013 such as voluntary mediation or binding arbitration? Are there any restrictions on when this alternative form of dispute resolution can be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>After the filing of the appeal, the dispute can be judicially settled before the hearing of both first &#8211; second instance Tax Courts and of the Supreme Court and penalties are reduced to 40% of the minimum if the appeal is pending before the Tax Court of first instance or to 50% if the appeal is pending before the Tax Court of second instance or 60% if the appeal is pending before the Supreme Court. If a settlement agreement is reached the litigation terminates.<\/p>\n<p>In case of international double taxation, dispute resolution procedures provided by the double tax treaties, the Arbitration Convention (No. 90\/436\/CEE of July 23, 1990) and the EU dispute resolution Directive (No. 2017\/1852 of October 10, 2017) apply. In particular, the EU dispute Directive \u2013 that is applicable from fiscal year 2018 onwards \u2013 applies to all the double taxation challenges even if they do not concern transfer price matters (e.g. tax residence).<\/p>\n<p>In case of MAP according to the double tax treaty \u2013 considering the absence of an obligation for the competent tax authorities to reach a result \u2013 the taxpayer has, in any case, to start a litigation before the Tax Court. In case of MAP based on Arbitration Convention and EU dispute resolution Directive \u2013 considering the obligation for the tax authorities to reach a result \u2013 the taxpayer might not start a litigation before the Tax Court.<\/p>\n<p>In connection with all the above mentioned MAPs if an outcome is reached by the competent tax authorities and the taxpayer accept the result, the latter must waive the pending tax litigation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are all the levels of onward appeal before the case reaches the highest appellate court.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are three levels of appeal: (i) Tax Court of first instance (deciding on the merit of the assessment), (ii) Tax Court of second instance (deciding on the merit again) and (iii) Supreme Court (highest court deciding on the conformity of Tax Court of second instance decision to the law).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main penalties that can apply when additional tax is charged are: (i) 90-180% (70% for violation committed starting from 1 September 2024, Law No. 87\/2024) of the higher tax in case of unfaithful tax return, (ii) 120-240% (120% for violation committed starting from 1 September 2024, Law No. 87\/2024) of the higher tax in case of omitted tax return and (iii) 30% (25% for violation committed starting from 1 September 2024, Law 87\/2024) in case of omitted payment; (iv) 135-270% (105-210% for violation committed starting from 1 September 2024) of the higher taxes if the violation is committed by using false invoices or documentation for fraudulent transaction in case of unfaithful VAT return.<\/p>\n<p>Penalties to be levied are increased by 50% \u00a0when the violation is carried out through the use of invoices for non-existing transactions or other false documentation or by means of other fraudulent conduct (for violation committed starting from 1 September 2024, Law No. 87\/2024 penalties are increased from 1\/2 to double).<\/p>\n<p>Penalties can also be increased in case the same violation is committed in previous fiscal year(s) and it has become final.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Penalties can be mitigated in the following main described circumstances.<\/p>\n<p>The taxpayer that regularized the violation committed through a self-voluntary regularisation (\u201cRavvedimento operoso\u201d) can benefit of the reduction of penalties applicable. In particular, the extent of the said reduction of the minimum penalty depends on the timing of the regularisation (reductions ranges from 1\/10 to 1\/4).<\/p>\n<p>In case the taxpayer and tax office, before the appeal, reached a settlement agreement, penalties are reduced to 1\/3 of the minimum applicable.<\/p>\n<p>Moreover, the taxpayer can settle the penalties levied in the tax assessment by paying \u2212 within the term to appeal \u22121\/3 of the levied penalties but, in case of a favourable outcome of the litigation, penalties paid cannot be reimbursed.<\/p>\n<p>After filing the appeal, if a judiciary settlement occurs before the hearing penalties are reduced to 40% of the minimum if the appeal is pending before the Tax Court of first instance or to 50% if the appeal is pending before the Tax Court of second instance or 60% if the appeal is pending before the Supreme Court.<\/p>\n<p>Lastly, the tax offices and Tax Courts can reduce (or cancel) penalties in case of specific circumstances provided by law such as evident disproportion between higher taxes and penalties, objective uncertainty in the application of the law, force majeure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, are you finding that tax authorities are more inclined to bring challenges in particular areas? If so, what are these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Italian tax authorities are more inclined to raise challenge items in the following areas: (i) transfer pricing, (ii) permanent establishment; (iii) withholding tax on dividends, interest or royalties (on the basis of alleged absence of beneficial ownership status of the recipient); (iv) tax residence and (v) VAT frauds.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas which taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Finding particularly difficult to deal with are the tax fraud challenges since they involved relevant criminal aspects that are managed by the public prosecutor on the basis of the criminal law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">\u202fWhich areas do you think will be most likely to be the subject of challenges and disputes in the next twelve months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In addition to those indicated under No. 29 above, it is most likely that particular focus in the next twelve months will be addressed by the tax authorities to abuse of law, VAT on digital services\u00a0 and tax credit (e.g., R&amp;D, Research, bonus building, industry 4.0).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4360<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/116054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=116054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}