Judgment No. 9900 of 2024: Clarifications on Objectively Non-Existent Transactions

Judgment No. 9900 of April 11, 2024, issued by the Court of Cassation, represents an important ruling in tax matters, particularly concerning objectively non-existent transactions. This case, involving the non-commercial entity C. versus A., highlights the retroactivity of Article 8, paragraphs 2 and 3, of Legislative Decree No. 16 of 2012, and its implications for VAT and income tax assessments.

Regulatory Context

Article 8 of Legislative Decree No. 16 of 2012 was introduced to combat fictitious transactions in the tax field, establishing that positive components derived from expenses not actually incurred shall not contribute to the formation of income. This principle is of particular relevance for non-commercial entities, which often face issues related to the deductibility of expenses.

Objectively non-existent transactions - Fictitious revenue - Article 8, paragraphs 2 and 3, of Legislative Decree No. 16 of 2012, converted with amendments by Law No. 44 of 2012 - Retroactivity - Consequence - Non-taxability. In the context of VAT and income tax assessments concerning objectively non-existent transactions, the application of Article 8, paragraph 2, of Legislative Decree No. 16 of 2012, converted with amendments by Law No. 44 of 2012, constituting ius superveniens and having retroactive effect, means that positive components directly related to expenses or other negative components concerning goods or services not actually exchanged or provided shall not contribute to the income subject to adjustment, within the limits of the amount not allowed as a deduction for the aforementioned expenses.

Implications of the Judgment

The Court of Cassation confirmed that the retroactivity of this legal provision implies that fictitious revenues cannot be considered for the determination of taxable income. This is a crucial aspect for non-commercial entities, which must be particularly attentive to the documentation and justification of incurred expenses.

• Strict control of tax documentation.
• Verification of the reality of transactions carried out.
• Legal and tax consultations to avoid disputes.

Conclusions

In conclusion, Judgment No. 9900 of 2024 represents a significant step forward in the fight against fictitious transactions and the protection of non-commercial entities. The retroactive application of the rule offers greater legal certainty for taxpayers, but at the same time requires greater attention in expense management and tax documentation. It is essential for non-commercial entities to seek adequate advice to navigate the complex current regulatory landscape.