1. What is the most significant change to your region/jurisdiction’s tax legislation or regulations in the past 12 months?
During the last year, the Italian government approved a reform of some pre-litigation and litigation rules. The reform is mainly focused on trying to increase the dialogue between the Revenue Agency and the taxpayer and to incentivise as much as possible a ‘collaborative’ resolution of remarks resulting from tax audit activities.
2. What has been the most significant impact of that change?
The most significant impact of the above-described change is an increase in the administrative solution of cases with the Revenue Agency and a decrease in litigation, as such latter procedure is mainly preferred for assessments involving significant amounts.
3. How do you anticipate that change impacting your work and the market moving forwards?
We have organised meetings with clients and participated in workshops to explain the reform and the consequences/impacts on audits performed by the tax authorities and Tax Police, which strongly increased in the last two years, after the substantial zeroing during the COVID period.
4. How has this changed the way you offer tax advice?
During meetings with clients and in workshops, I stress the importance of a cooperative and collaborative approach with the tax authorities [from] the beginning of the audit activities, to reduce as much as possible the final exposure and to be in a better position when discussing the assessment with the tax authority to fix it in a collaborative way (when possible).
5. What potential other legislative/regulatory changes are on the horizon that you think will have a big impact on your region/jurisdiction?
The reform of the laws that [set forth] the tax controversy rules.
6. What are the potential outcomes that might occur if those changes are implemented?
Finally, the Tax Court will have professional judges, and this, together with the new procedural rules, should improve the outcomes from efficiency and legal perspectives.
7. Do you think that change will have a positive effect on both your practice and the wider regional/jurisdictional market?
The reform will mainly impact my practice, but, of course, it could positively impact the clients’ feelings about tax controversy justice and the possibility of opting for it as a valid way to challenge the tax authorities’ position or interpretation.
8. Are there any regulatory/legislative changes you believe should be implemented in your region/jurisdiction?
A reform of the litigation procedure in front of the Supreme Court in order to speed up the decisional process as much as possible.
Proceedings before the Court of Cassation have an average duration of about 4/5 years, and this is perceived by taxpayers as an aggravation of the risk already inherent in litigation.
The time factor, in fact, also affects the taxpayer’s decision to accept the tax authorities’ claim or start litigation.
9. How do you believe those changes would help improve the tax landscape in your market?
Often clients (especially not Italians) are not encouraged to start litigation due to its length; with such a reform, they can re-evaluate the positions, at least for the most significant (in terms of amount or complexity) assessments by tax authorities.
10. How are issues surrounding the taxation of the digital economy affecting your work?
The digital economy has taken on a very important role in recent years. However, it is a very complex phenomenon to interpret for taxation purposes. This difficulty involves a high degree of conflict with the tax authorities, but it has also allowed us to start paths of cooperation with them that see us engaged in the front line.
11. How would you describe the tax authorities’ approach in your region/jurisdiction?
In Italy, there is the peculiarity that tax audits can be conducted not only by the tax authorities but also by the Tax Police. In this context, the approach of the Tax Police (Guardia di Finanza) during the audit activities is more straightforward and interrogatory, [and it is] often difficult to deal with their request. Basically, the Revenue Agency is a bit more open to a collaborative approach and [discussions] with the consultants and the taxpayer.
In recent years, the relationship between taxpayers/consultants and the tax authorities has changed considerably. There is certainly greater cooperation and less rigidity in evaluating the specificities of the individual taxpayer under audit.
Tel: +39 0283324063
This document has been prepared solely for the purpose of publishing in the 2025 ITR World Tax guide and may not be used for any other purpose. This document and its contents may not be reproduced, redistributed, or passed on, directly or indirectly, to any other person in whole or in part without Deloitte’s prior written consent.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide make an impact that matters at www.deloitte.com.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.
© 2024. For information, contact Deloitte Global.
