Commentary on Order No. 11072 of 2024: Court Costs and Set-off in Tax Litigation

Tax litigation is a complex and highly relevant area for both taxpayers and tax authorities. Order No. 11072 of April 24, 2024, issued by the Court of Cassation, provides important clarifications regarding the issue of court costs, particularly in relation to set-off when there is partial acceptance of the taxpayer's claims. Analyzing this order allows us to better understand the dynamics related to the recognition of tax exemptions and the legal costs associated with them.

The Case and the Court's Decision

In this specific case, the dispute concerned an appeal of a tax assessment by C. (C. E.) against C. (D. M. A.), relating to six properties. The taxpayer contested the failure to recognize exemptions or reductions on some of them. The Court reiterated that, in matters of costs in tax proceedings, an appeal for the non-recognition of distinct exemptions constitutes a single claim articulated in multiple parts. This aspect is crucial, as it implies that partial acceptance of the requests justifies the set-off of costs, even if the final judgment is favorable to the tax authority.

In general. In matters of costs in tax proceedings, the taxpayer's appeal of the tax assessment for the non-recognition of distinct and independent exemptions or reductions on individual properties, in relation to the same tax, constitutes a single claim articulated in a plurality of parts, with respect to which partial acceptance, even following the reversal of the appealed judgment in favor of the tax authority, constitutes a sufficient justification for the set-off of court costs. (In this case, the S.C. confirmed the appealed decision which had ordered the set-off of appeal costs due to the partial validity of the appeal filed by the authority, as exemption from IMU was recognized with reference to two of the six properties subject to the challenged assessment notice).

Implications of the Ruling

This decision has several significant implications for taxpayers and for the management of legal costs in the tax field. In particular, it is worth highlighting:

• Uniqueness of the Claim: The Court clarified that an appeal of a tax assessment can be considered a single claim, even if it concerns multiple properties. This approach simplifies claim management and offers greater clarity.
• Set-off of Costs: Partial acceptance of the taxpayer's requests can justify the set-off of costs, meaning that the losing party is not always obliged to bear the full burden of legal expenses.
• Legal References: The decision is based on established norms and principles, such as the Code of Civil Procedure and specific tax provisions, which emphasize the importance of a fair and just interpretation of legal costs.

Conclusions

In conclusion, Order No. 11072 of 2024 represents a step forward in protecting taxpayers' rights in tax litigation. It clarifies that court costs can be set off even in the presence of partial acceptance of claims, thus providing greater protection for the taxpayer. It is essential that legal and tax professionals take these indications into consideration to best guide their clients in similar situations.