Settlement of tax disputes and the double defeat of the Tax Authority: analysis of Order no. 30454 of 2025

The landscape of Italian tax litigation is often characterized by uncertainties that require the intervention of the Supreme Court of Cassation to ensure a uniform interpretation of the law. One of the most significant tools for reducing the judicial backlog has been the so-called "tax peace," introduced by Decree-Law no. 119 of 2018. Order no. 30454 of 18/11/2025 specifically addresses the conditions for accessing the settlement of disputes pending before the Court of Cassation, focusing on the amount of payment due by the taxpayer.

The mechanism of the settlement under D.L. 119/2018

Article 6 of D.L. no. 119 of 2018 allows for the closure of tax disputes involving the Revenue Agency by paying reduced amounts based on the status of the proceedings and the outcome of previous stages. The legislator's objective is to collect sums for the Treasury rapidly while simultaneously relieving the courts of proceedings that could last for years. In the case examined by the Supreme Court, the dispute involved the Financial Administration, represented by the State Attorney's Office (Avvocatura Generale dello Stato), and the taxpayer G., in a dispute originating from a decision of the Regional Tax Commission of Veneto.

Requirements for the 5% reduced payment and the Court's ruling

The crux of the decision concerns the interpretation of paragraph 2-ter of Art. 6. The provision allows for the extinguishment of the tax debt by paying only 5% of the value of the dispute, but it requires a strict condition: the Administration must have been defeated in both merits-based instances. Here is how the Supreme Court summarized the applicable principle of law:

Regarding the settlement pursuant to Art. 6 of D.L. no. 119 of 2018, converted with amendments by Law no. 136 of 2018, tax disputes pending before the Court of Cassation may be settled, pursuant to paragraph 2-ter of the aforementioned article, with the payment of an amount equal to 5% of the value of the dispute if the Administration, with specific reference to the assessment still sub iudice, was unsuccessful in both degrees of the merits proceedings.

This ruling clarifies that the double defeat of the Tax Authority is the essential prerequisite for reducing the debt to 5%. If the Administration had won in even one instance, the payment percentage would have been significantly higher. The mechanism therefore rewards the consistency of decisions favorable to the taxpayer obtained in the merits phases, rendering the tax claim less robust in the eyes of the law.

Practical implications for taxpayers

For those with an appeal pending before the Court of Cassation, Order no. 30454 of 2025 confirms an extremely advantageous exit route if certain elements are met:

• The pendency of the appeal on the date provided by the relevant legislation.
• The taxpayer's victory in both the first instance and on appeal (double defeat of the office).
• The timely payment of the reduced amount calculated on the value of the dispute still sub iudice.

In the case at hand, the Court declared the proceedings extinguished precisely due to the taxpayer G.'s successful settlement, confirming the legitimacy of closing the dispute pending against the CTR Veneto.

Conclusions

Order no. 30454 of 2025 reaffirms a principle of equity: if the Tax Authority has lost twice, the tax claim is considered so fragile as to justify a definitive closure with a 5% payment. Monitoring these jurisprudential trends is essential for every law firm and business, in order to evaluate whether it is more convenient to continue an uncertain judgment or to adhere to tax peace instruments to ensure savings and legal certainty.