Deflationary Instruments for Tax Litigation

Sometimes, a tax litigation process may not be the optimal solution in terms of speed and objectives pursued. Over the years, the legislator has made available to taxpayers a series of alternative tools, including:

  • self-defense,
  • assessment with agreement, or assessment by agreement, or assessment through agreement
  • complaint/mediation;
  • I'm asking. or I'm inquiring. or I'm questioning.

Deflative Instruments in Tax Litigation: Self-Remediation

Self-cancellation consists of the power of the tax authorities to annul their own acts – if they are unlawful or unfounded – pursuant to Article 2-quater, Legislative Decree 30.9.1994, n. 564.

Self-protection can be activated on:

  • taxpayer's request;
  • request of the Taxpayer Ombudsman;
  • at the initiative of the Revenue Agency

and can be carried out at any time without time limits, even during a trial or if no appeal has been filed . It cannot be carried out for reasons for which there has been a judgment in favor of the Agency that has become final and binding.

Tools for Reducing Tax Litigation: Settlement with Acceptance

The settlement agreement procedure (Articles 1 et seq., Legislative Decree no. 218/1997) allows taxpayers to administratively and controversially settle tax claims relating to income tax, VAT, and other indirect taxes. Using this settlement procedure offers benefits, including the possibility of reducing the amount of the tax claim and reducing penalties to a third of the minimum amount foreseen. The notification of the settlement request primarily suspends, for a period of 90 days, the deadline for challenging the tax assessment and collecting the sums due.

Deflationary Instruments for Tax Disputes: Complaint / Mediation

The complaint/mediation procedure (Article 17-bis of Legislative Decree 546/1992) is a mechanism for deflating tax litigation, aimed at encouraging the resolution of disputes at the administrative level. It consists of two main parts:

  • the complaint, which consists of an administrative appeal aimed at obtaining a review of the act by the Office, in order to ascertain its legitimacy and foundation;
  • mediation, which aims to resolve the dispute through a dialogue.

In the case of a dispute with a value not exceeding the amounts indicated, the complaint is mandatory, constituting, for the taxpayer, a condition for the admissibility of any subsequent appeal.

Deflationary Instruments for Tax Litigation: Interpello

An interpellation is a request that a taxpayer makes to the Revenue Agency before taking a tax-relevant action, in order to obtain clarification regarding a specific and personal case concerning the interpretation, application, or non-application of legal rules of various kinds relating to state taxes.

Currently, the existing types of interpellations are as follows:

  • the ordinary request for clarification , aimed at seeking clarification on regulatory aspects;
  • The evidentiary inquiry allows the taxpayer to request an opinion regarding the existence of the conditions or the suitability of the evidence required by law to access certain tax regimes.
  • the disapplication request , aimed at removing the applicability of anti-evasion tax regulations (it is the only type of mandatory request);
  • The anti-abuse inquiry allows one to obtain an opinion regarding any potential aspects of abuse of rights in a specific transaction.
  • the inquiry on new investments , provided for in Article 2 of Legislative Decree No. 147/2015, which can be made by investors, Italian or foreign, who intend to make investments in the territory of the State with a value not less than thirty million euros and with significant employment impacts.