Italian tax litigation and assessment regulations

Legal and regulatory developments in Italy have addressed various aspects of tax assessment and litigation procedures. Initial judicial clarifications from the Court of Cassation established that while judges have the authority to evaluate evidence through prudent assessment, the burden of proof remains with tax authorities to demonstrate violations.

This period also saw focus on the ‘redditometro’, a tool used by the Agenzia delle Entrate to estimate income based on spending and lifestyle. While the number of controls using this method has increased slightly, revenue collected through this channel has declined. Current regulations allow taxpayers a preventive contradictory process to provide counter-evidence.

Subsequent rulings by the Court of Cassation have further refined litigation procedures, specifically regarding the representation of the Agenzia delle Entrate-Riscossione. The court ruled that tax appeals using private lawyers are inadmissible unless the agency provides specific justifications, such as a conflict of interest or a declaration of unavailability from the Avvocatura dello Stato. Failure to provide such documentation results in an incurable formal defect.