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New Rules On Provisional Enforceability Of Tax Assessments

25 May 2011

Recent changes in Italian law concerning the scope of shortening the collection procedure of provisionally assessed taxes have been made. Taxand Italy provides an overview of these changes.

Tax assessments issued from 1 July 2011, and relating to the financial year of 2007 and onwards, will be entitled to a provisional collection of 50% higher taxes assessed after 90 days from the issuance of the assessment (longer terms are provided in the event taxpayers start the procedure of assessment with mutual agreement). Consequently, the forced execution procedure of assessed taxes may start without other warning procedures, as was previously provided, which required longer terms for the collection and forced execution to be put in place.

It has also been stated that in the event of appeal, with the suspension request, the provisional enforceability is ineffective by law for a period of up to 120 days prior to the suspension decision. In the event of suspension decided by the Tax Court, the provisional collection will be suspended until the end of the first judgment.

Taxand's Take

The above changes will impact on decisions made by assessed companies regarding valuation of the most convenient strategies and proposed solutions concerning the decision to start a litigation procedure in shorter terms.

Your Taxand contacts for further queries are:

Guido Arie Petraroli
T. +39 02 7260591

Cristina Periti
T. +39 02 7260591

Taxand's Take Author