Judgment No. 22257 of 2024: Usability of Confidential Information in VAT Matters

The recent order No. 22257 of August 6, 2024, by the Court of Cassation addresses a crucial issue for tax law: the usability of confidential information originating from foreign authorities in the context of tax assessments concerning VAT. This judgment offers important clarifications regarding the rights and duties of taxpayers, as well as the assessment methods employed by the tax administration.

Context and Significance of the Judgment

In this case, the Court of Cassation confirmed the possibility of using information exchanged between the tax authorities of the European Union Member States for VAT assessment purposes, as provided for by Regulation (EC) No. 1798 of 2003, now incorporated into Regulation (EU) No. 904 of 2010. This aspect is of fundamental importance, as it implies that such information, even if covered by official secrecy, has direct probative value.

• Information can be used even if only quoted in part.
• The taxpayer bears the burden of contesting and providing contrary evidence.
• The principle of international cooperation in tax matters is strengthened.

Notice of assessment - Confidential information from foreign authority - Usability - Conditions - Contrary proof - Taxpayer's burden. In the context of tax assessments concerning VAT, information covered by official secrecy, exchanged by the competent authorities pursuant to Regulation (EC) No. 1798 of 2003, incorporated into Regulation (EU) No. 904 of 2010, is usable by virtue of the direct probative value recognized by the aforementioned legislation, even if it is only quoted in part, pursuant to Articles 42 and 56 of the respective regulations. The burden of providing contrary proof lies with the taxpayer who contests it.

Implications for Taxpayers

This decision by the Court of Cassation not only clarifies the possibility for the tax administration to rely on international information but also places a significant burden on taxpayers. In fact, anyone wishing to contest an assessment must be able to provide contrary evidence, demonstrating the inaccuracy of the information used by the administration. This aspect is crucial in a context where transparency and tax cooperation are increasingly at the center of European policies.

Conclusions

In conclusion, order No. 22257 of 2024 represents a significant step towards greater integration and cooperation between European tax authorities. The recognition of the usability of confidential information poses new challenges for taxpayers, who must be prepared to defend themselves with adequate evidence. This judgment, therefore, not only clarifies the current regulations but also calls for a rethinking of tax defense strategies in the era of globalization.