Commentary on Judgment No. 23409 of 2024: Validity of Late Declarations and Tax Assessment

Judgment No. 23409 of August 30, 2024, by the Court of Cassation, presided over by L. Luciotti, offers an important reflection on the validity of late-filed income tax returns and the consequences related to tax assessment. The decision is particularly relevant for taxpayers, as it clarifies certain aspects of current legislation and the sanctioning applications in cases of late filing.

Content of the Judgment

Tax assessment administrative activities - Late filing of income tax return within the deadline provided for in art. 2, paragraph 7, of Presidential Decree No. 322 of 1998 - Validity - Applicability of sanctions - Existence - Consequences. The commencement of checks, accesses, inspections, or other tax assessment administrative activities does not prevent the taxpayer from filing a valid late declaration within the deadline provided for in art. 2, paragraph 7, of Presidential Decree No. 322 of 1998, without this delay, without prejudice to the application of the relevant sanctions, allowing the tax administration to proceed with an inductive assessment, provided for by art. 41 of Presidential Decree No. 600 of 1973 for the different hypotheses of omitted filing or void declarations, pursuant to the provisions of title I of the same Presidential Decree No. 600 of 1973.

The Court emphasizes that, despite the commencement of tax assessment activities, the taxpayer has the option to file a late declaration, which will be considered valid. However, it is crucial to note that such late filing still entails the application of sanctions, as provided for by law.

Practical Implications of the Judgment

This judgment has significant implications for taxpayers, particularly:

• Clarity on the possibility of filing late declarations without this preventing tax assessment.
• Confirmation of the validity of declarations filed even after the initiation of tax audits.
• The need to consider the applicable sanctions even in cases of valid late declarations.

In essence, the Court of Cassation reiterates that timely filing of the declaration, even if late, can avoid inductive assessment, but sanctions remain a reality to be faced.

Conclusions

In conclusion, ordinance No. 23409 of 2024 represents a significant step in clarifying the rules regarding the late filing of tax returns. It offers taxpayers greater certainty in their dealings with the tax authorities, highlighting that it is always possible to remedy errors or delays, while being aware of any potential sanctions. It is therefore essential to maintain good communication with one's tax advisor to avoid future issues.