The fiscal truce - part II

News from the defining institutes

Why is it so important to deal with tax relief in the current regulatory environment? The answer appears rather simple: our country is currently serving an amount equal to 1,100 billion not recovered, a huge hole that puts Italy's economic resistance to the test.

It is therefore also on collection or compulsory recovery that the Government first and foremost but also Parliament will demonstrate their efficiency and the change of pace compared to the previous situation. This is why it is important in this second part of our journey on the fiscal truce to understand well what is new about the defining institutions, the ones through which we will be able to recover at least part of that billion hole in our taxes.

In particular, we will deal here with:

1. Facilitated acceptance and settlement of assessment documents
2. Facilitated settlement of pending tax disputes
3. Facilitated conciliation of pending tax disputes
4. Facilitated waiver of tax judgments
5. Regularization of omitted payments of installments in settlement institutions

1. MEMBERSHIP AND FACILITATED DEFINITION OF ASSESSMENT DOCUMENTS

Starting from the taxes administered by the Revenue Agency, the 2023 Budget Law confirms the possibility of defining the assessment documents. But this is possible, as highlighted in the Explanatory Report, provided that such acts have not been challenged, the appeal deadlines have not already expired or they are not notified by the Agency by 31 March 2023.

In two different cases the sanction reduced to 1/18 of the minimum is applied, and in particular in the case of:

• Assessments with acceptance: for PVCs delivered by 31 March of this year, notices not contested and still contestable as of 1 January 2023 and notified after by 31 March 2023. Or for assessments with acceptance relating to mandatory invitations notified by 31 March (pursuant to art. 5-ter, Legislative Decree no. 218/97);
• Definition in acquiescence: for notices not contested and still contestable as of 1 January 2023, those notified to the Revenue Agency as well as a definition that requires the payment of the fine imposed reduced to 1/18 and the interest applied, within the deadline for submitting the appeal.

The Legislator also focused on the sums owed which cannot be compensated with credits available to the debtor: these, in fact, can be paid in installments in a maximum of 20 installments/quarter. The only limits are the amount - always equal, not variable - and the payment deadline, set for the last day of each quarter following the payment of the first instalment.

As in other cases, here too we await the issuance of the implementing provisions by the Revenue Agency.

2. FACILITATED SETTLEMENT OF PENDING TAX DISPUTES

In this case the reference is to tax disputes in which the Revenue or Customs Agency is also a party with the object of tax actions such as notices of assessment, acts of imposition of sanctions and others. Disputes fall within this definition:

• still pending as of 1 January 2023, in every state and level of judgment;
• with first instance appeal notified to the other party by 1 January 2023 with trial not yet concluded.

However, disputes concerning traditional own resources or sums due to recover state aid are not included (art. 16, EU Regulation no. 2015/1589). Even iIn this case, the implementing provisions from the Revenue Agency are awaited.

Benefits

First of all, the benefit of this type of means lies precisely in the closure of the dispute - on the one hand, therefore, the end of the debtor's obligation, on the other the recovery of at least part of the sums owed by the State. For this to happen, the payment of a sum equal to the value of the dispute is required; in other words, the amount of the tax due net of interest and any other sanctions (art. 12, paragraph 2, Legislative Decree no. 546/92).

But what happens when the Agency succumbs or loses the dispute? In this case, the payment of a percentage of the value of the dispute is sufficient, but this varies according to the level of judgment:

• if it occurs in the first degree, 40% of the value of the dispute is required;
• if it occurs in the second degree, 15% is required.

However, the circumstance is different in which the appeal is only partially accepted and therefore both the Agency and the taxpayer lose: in this case the entire sum relating to the part of the act confirmed by the ruling is claimed (i.e. the part of the ruling which agrees with the Agency) or a sum between 40% and 15% for the part of the act annulled (for the part which instead agrees with the taxpayer).

The last case worthy of note are disputes before the Court of Cassation: if in these cases the Agency loses at any previous level of judgement, the payment of 5% of the value of the dispute is requested for its settlement.

How to submit the application

The person who proposed the introductory document or took over from it or is entitled to do so can submit a request. The deadline for submission is June 30, 2023.

What happens after the facilitated definition?

Once the application has been submitted, the dispute is suspended until 10 July 2023. The person who made the request must deposit a copy of the application for facilitated settlement (and a copy of the payment of the amount due). At this point, the judicial body suspends activities until the response, positive or negative, to the request for facilitated settlement is received.

What happens in case of refusal?

The taxpayer who has been denied this option can appeal the denial before the judicial body within 60 days.

3. FACILITATED CONCILIATION OF PENDING TAX DISPUTES

The facilitated definition is not the only tool made available to the taxpayer: in the 2023 Budget Law, in fact, the facilitated conciliation of disputes before the Courts of Tax Justice of which the Revenue Agency is a part is confirmed.

It is in fact possible to resort to a conciliatory agreement which provides for the reduction of the fine to 1/18 of the minimum together with interest and accessories. However, it is not possible to resort to facilitated conciliation for disputes concerning traditional own resources and sums due to recover state aid. The advantage of conciliation lies, obviously, in the possibility of not having to resort to a judicial body but reaching an agreement between the parties. In fact, it is sufficient to pay the sums due (in a single payment or in installments) within twenty days of signing the agreement: once this duty has been fulfilled, the conciliation is completed.

4. FACILITATED WAIVER OF TAX JUDGMENTS

It is also possible that the taxpayer does not wish to continue with the dispute and therefore chooses to interrupt the disputeversia. In this case the Legislator of the 2023 Budget Law allows waivers in specific cases. This can happen following the settlement definition of the counterparty in cases where the dispute has reached the Court of Cassation, has as its object tax actions and sees the Revenue Agency as the counterparty.

For this waiver to be completed, the signing of the agreement between the parties is necessary and the payment of the sums due (taxes, penalties reduced to 1/18 of the minimum, interest and any accessories) within twenty days of signing the agreement. Once the waiver has taken place, the subject obviously can no longer claim rights to the sums (he cannot request their repayment).

Even in this case, the waiver cannot take place in disputes that concern traditional own resources and sums due to recover state aid.

5. REGULARIZATION OF OMITTED PAYMENTS OF INSTALLMENTS IN THE DEFINITIONAL INSTITUTIONS

With regard to taxes administered by the Revenue Agency, the Legislator confirms the possibility of regularizing the position with full payment of the tax only and of the omitted or insufficient payment by 1 January 2023 of the sums due following definitional institutions such as:

• conciliations
• assessments with acceptance
• acquiescence of assessment, rectification or settlement notices
• complaint or mediation procedures

To complete this possibility, the payment of the sum due is required in a single payment or in installments by March 31st of this year.