Analysis of Judgment No. 9723 of 2024: Proof of Objectively Non-Existent Transactions

Judgment No. 9723 of April 10, 2024, issued by the Court of Cassation, represents a significant benchmark for tax law, particularly concerning the proof of objectively non-existent transactions in VAT matters. In this ruling, the court clearly established the roles and responsibilities between the tax administration and the taxpayer, offering a regulatory framework in a complex context.

The Regulatory Context

The central issue of the judgment concerns the burden of proof regarding the existence of objectively non-existent transactions. The Court reiterated that this burden lies with the tax administration. The administration can fulfill this task through simple presumptions, such as the absence of an adequate organizational structure. This means that if the administration fails to prove the non-existence of the transaction, the taxpayer should be able to deduct costs and reclaim VAT.

• Absence of suitable organizational structure
• Sufficient presumptive elements
• Taxpayer's contrary proof

Objectively non-existent transactions - Proof of non-existence - Inferential proceeding - Presumptive elements - Sufficiency - Taxpayer's contrary proof - Content. In the context of VAT, the burden of proof regarding the existence of objectively non-existent transactions rests with the tax administration and can be met through simple presumptions, such as the absence of a suitable organizational structure (premises, equipment, personnel, utilities). Conversely, for the purpose of VAT deduction and the deductibility of related costs, the taxpayer must prove the actual existence of the contested transactions. This burden cannot be considered discharged by presenting an invoice, nor by virtue of the formal regularity of accounting records or the payment methods used, as these are typically employed precisely to make a fictitious transaction appear real.

Implications for Taxpayers

A crucial aspect of the judgment concerns the taxpayer's obligation to demonstrate the actual existence of the contested transactions. Specifically, presenting invoices or regular accounting documentation is not sufficient to prove the reality of the transactions. This clarification is of fundamental importance for taxpayers, as it highlights the need for more robust and detailed documentation.

Conclusions

Judgment No. 9723 of 2024 offers a clear delineation of roles and responsibilities in the context of objectively non-existent transactions. It provides important guidance for both the tax administration and taxpayers, establishing a principle of fairness and clarity in VAT matters. The ability to prove the existence of contested transactions therefore becomes a key element for tax planning and the management of risks related to tax assessments.