Commentary on Judgment No. 22582 of 2024: The Assessment of the Taxable Base for Electrical Substations

The recent judgment No. 22582 of August 9, 2024, offers important clarifications on local taxation, specifically regarding the determination of the taxable base for electrical substations already registered in the land registry. The Court, presided over by P. L., addresses the issue of the relevance of the plant component in the tax assessment of these structures, highlighting how such plants, if permanently fixed and functional to the energy distribution network, must be considered an integral part of the substation itself.

The Relevance of the Plant Component

According to the judgment, the plants of the electricity transport and distribution network, if permanently fixed to the ground, constitute an essential part of the electrical substation. This configuration is fundamental for the correct assessment of the taxable base for the payment of ICI and IMU. In fact, the Court emphasizes that the valuation of the plant component is necessary to determine the cadastral income, which can be revalued ex post based on a higher income attributed ex officio by the Revenue Agency.

• The plant component must be considered for tax purposes.
• The taxable base can be revalued even for years prior to notification to the taxpayer.
• The Municipality has the power to value the cadastral income in accordance with current regulations.

Reference Legislation and Tax Implications

The judgment is based on specific legislative provisions, particularly Articles 336 and 337 of Law No. 311 of 2004, which govern cadastral regularization and income valuation. These rules establish that plants strictly functional to the electricity production process must be included in the taxable base, thus ensuring fair taxation in compliance with current provisions. Furthermore, the Court has referred to previous case law that confirms the need to consider the entire plant for the determination of cadastral income.

Electrical substation already registered in the land registry - Determination of the taxable base - Plant component - Relevance - Conditions - Criteria. In matters of ICI and IMU, the plants of the electricity transport and distribution network, if permanently fixed to the appurtenant ground or to the main structure, constitute an integral part of the substation belonging to the supply service operator, as they are strictly functional to the production process. For the purpose of determining the taxable base of the taxes due for the substation already registered in the land registry, the higher income attributed ex officio by the Revenue Agency can be used ex post, after the invitation for cadastral regularization, through the valuation of the plant component, by the Municipality, pursuant to art. 1, paragraphs 336 and 337, of Law No. 311 of 2004, also with reference to years preceding its notification to the taxpayer.

Conclusions

Judgment No. 22582 of 2024 represents a significant step in clarifying the tax rules relating to electrical substations. It not only confirms the importance of the plant component in determining the taxable base but also offers a clear regulatory framework for electricity operators. The tax implications are considerable, as Municipalities now have more effective tools to correctly value cadastral incomes, thereby ensuring adequate taxation for structures fundamental to the energy supply service. The clarity offered by the Court could also facilitate the potential regularization of cadastral positions, contributing to greater equity in the local tax system.