Order No. 9403 of 2024: Presumption of Income and Bank Investigations

Order No. 9403 of 2024, issued by the Court of Cassation, has generated considerable interest regarding the application of the presumption of income derived from banking transactions. This ruling provides important clarifications on the scope of tax investigations and taxpayers' rights, establishing limits on the actions of the financial administration.

Regulatory Context

The legal presumption of availability of higher income, provided for by Article 32, paragraph 1, no. 2, of Presidential Decree No. 600 of 1973, applies not only to holders of business income or income from self-employment but extends to all taxpayers. This principle is further supported by Article 38, which concerns the assessment of the total income of individuals. However, the Constitutional Court, with ruling No. 228 of 2014, introduced some significant limitations.

Assessment - Bank investigations - Presumption pursuant to art. 32 Presidential Decree No. 600 of 1973 - General applicability to taxpayers - Limits. In matters of income tax, the legal (rebuttable) presumption of availability of higher income, derived from bank account results, pursuant to art. 32, paragraph 1, no. 2, of Presidential Decree No. 600 of 1973, is not attributable solely to holders of business income or income from self-employment, but extends to all taxpayers, as can be inferred from the subsequent art. 38, concerning the assessment of the total income of individuals, which refers to the same art. 32, paragraph 1, no. 2; however, following the ruling of the Constitutional Court no. 228 of 2014, withdrawal banking transactions have presumptive value only against holders of business income, while deposit transactions have presumptive value against all taxpayers, who can counter their effectiveness by demonstrating that they are already included in the income subject to tax or are irrelevant.

Implications of the Ruling

This order represents a significant step forward for taxpayers' rights, as it clarifies that:

• Deposit transactions in bank accounts can be used as evidence against all taxpayers.
• Taxpayers have the right to contest these presumptions by demonstrating that the deposits have already been declared or are irrelevant.
• Withdrawal transactions are considered a presumption only for holders of business income.

These clarifications are crucial, as they offer taxpayers defense tools against any unjustified tax assessments and ensure a balance between the administration's powers and citizens' rights.

Conclusions

In conclusion, Order No. 9403 of 2024 represents an important clarification on the presumption of income and tax investigations. The ability for taxpayers to contest presumptions based on banking transactions offers greater protection and transparency in the relationship with the financial administration. It is essential that every taxpayer be aware of these rights and seek the assistance of tax experts to protect their interests.