Commentary on Order No. 9693 of 2024: Tax Credit and Income Tax Return

The topic of income tax returns is always highly relevant, especially when discussing tax credits. Order No. 9693 of April 10, 2024, issued by the Court of Cassation, offers important insights for understanding the dynamics related to tax incentives in the film industry. This ruling clarifies that tax credits for film incentives must be declared in the income tax return for the period in which they were granted, under penalty of forfeiture of the right to use them.

Regulatory Context

The Court, presided over by R. C., and rapporteur R. A., reiterated a fundamental principle: the income tax return is an irrevocable declaration of intent, which cannot be amended once filed, unless the taxpayer can prove an error and its knowability by the tax administration. This is based on the general rules regarding defects of consent, as set out in Articles 1427 et seq. of the Civil Code.

Income tax return - Tax credit for film incentives - Indication in the period of grant - Necessity - Forfeiture - Amendability - Declaration of intent - Irrevocability - Existence. Regarding income tax returns, tax credits for film incentives must necessarily be indicated, under penalty of forfeiture, in the return for the tax period during which the benefit was granted, as it constitutes an irrevocable declaration of intent aimed at altering the taxable base, which cannot be amended in case of error, unless the taxpayer proves that this error was known or knowable by the tax administration, according to the general rules on defects of consent under Articles 1427 et seq. of the Civil Code.

Implications of the Ruling

The implications of this order are manifold and particularly concern:

• Obligation to Declare: It is imperative for taxpayers to declare tax credits in the return for the period in which they were granted, to avoid forfeiture of the right.
• Irrevocability: Once the return is filed, it cannot be amended, unless the error is proven with tangible evidence.
• Knowability of Error: The possibility of amending the return is limited to cases where the error was known or knowable by the tax administration.

Conclusions

In summary, Order No. 9693 of 2024 reaffirms a fundamental principle in tax law: the necessity of correct and timely declaration of tax credits. These provisions not only protect the integrity of the tax system but also offer taxpayers certainty and clarity. It is essential for those operating in the film industry and for legal professionals to fully understand these rules to avoid future issues and ensure proper management of tax returns.