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Italy Establishes Rules for Settling Pending Tax Disputes before the Supreme Court — Orbitax Tax News & Alerts

The Italian Revenue Agency (IRA) has published Provision (Prot.) no. 356446/2022 of 16 September 2022 for the implementation of Article 5 of Law No. 130 of 31 August 2022 on provisions for tax justice. Under Article 5, pending tax disputes before the Supreme Court may be settled through the payment of a percentage of the disputed amount, net of interest, default penalties, etc. as follows:

  • 5% if the net amount does not exceed EUR 100,000 and the IRA has been unsuccessful in all previous stages of the dispute (i.e., the taxpayer won in all lower courts); and
  • 20% if the net amount does not exceed EUR 50,000 and the IRA was partially unsuccessful (i.e., the taxpayer won in at least one lower court).

Provision no. 356446/2022 establishes the rules for taxpayers with pending disputes to take advantage of the settlement scheme. This includes the required application form, which may be submitted from 16 September 2022 until 16 January 2023, as well as the method of payment. The Provision also clarifies the types of disputes that are ineligible for the settlement scheme, which include disputes related to EU own resources, VAT on imports, and amounts due by way of State aid recovery.