Court Order No. 9312 of 2024: Analysis of the Compensation of Legal Costs

In the context of tax law, the issue of compensating legal costs is of paramount importance. Recently, Court Order No. 9312 of April 8, 2024, has provided significant clarifications regarding the requirements for such compensation, establishing clear criteria for judges and parties involved. The decision of the Court of Cassation focused on Article 15 of Legislative Decree No. 546 of 1992, as amended by Legislative Decree No. 156 of 2015, emphasizing the need for explicit reasoning.

Requirements for the Compensation of Legal Costs

As established by the Court Order, the compensation of legal costs in tax proceedings is permitted only if the reasons are clear and well-founded. The Court emphasized that it is necessary to provide:

• Serious and exceptional reasons to support the decision to compensate costs;
• Reasoning that is not illogical or erroneous;
• The possibility of reviewing such a decision on appeal.

This specification is of vital importance, as a lack of adequate reasoning can constitute a violation of law, which can be challenged before the Court of Cassation.

The Ruling's Principle

Tax proceedings - Compensation of legal costs pursuant to Article 15, paragraphs 1 and 2, of Legislative Decree No. 546 of 1992, as amended by Article 9, paragraph 1, letter f, of Legislative Decree No. 156 of 2015 - Reasoning - Explicit indication of serious and exceptional reasons - Necessity - Non-illogicality or erroneousness - Reviewability by the Court of Cassation. In tax proceedings, the compensation of legal costs, pursuant to Article 15, paragraphs 1 and 2, of Legislative Decree No. 546 of 1992, as amended by Article 9, paragraph 1, letter f, of Legislative Decree No. 156 of 2015, is permitted by explicitly stating in the reasoning the serious and exceptional reasons that support it, which cannot be illogical or erroneous, otherwise constituting a violation of law, challengeable on appeal.

This principle clearly highlights the importance of reasoning in the decision-making process regarding the compensation of costs. The Court of Cassation has therefore reiterated that a lack of adequate reasoning can lead to significant legal consequences, making the decision vulnerable to appeals.

Conclusions

Court Order No. 9312 of 2024 represents an important step forward in defining the rules concerning the compensation of legal costs in tax proceedings. The requirement to provide clear reasoning and to explicitly state serious and exceptional reasons not only protects the rights of the parties involved but also contributes to ensuring greater legal certainty. Companies and taxpayers should pay particular attention to these requirements to avoid future issues in legal proceedings.