Italian Supreme Court Sends Covid Grant Recovery Disputes to Ordinary Courts

The Sezioni Unite of the Court of Cassation ruled that disputes over the recovery of public Covid‑19 contributions are outside the jurisdiction of the tax courts and must be heard by ordinary judges. The decision, issued in sentence no. 34559/2025, builds on earlier rulings (sentences 34581/2023 and Constitutional Court sentence 124/2025) that clarified the non‑tax nature of Covid‑19 grant recoveries. The Court noted that the grants are not taxable income nor a credit, and therefore the procedural rules for tax matters do not apply.

The judgment overturns the earlier practice of handling such cases in the tax‑court system, potentially widening protection for taxpayers who received the funds and opening the way for ordinary courts to adjudicate claims of alleged improper receipt of Covid‑19 aid.