Litigation reform: how the tax process will change

The implementation of tax reform also passes through the litigation reform.

Among the measures approved by Cabinet which has just concluded today, 16 November 2023, there is also the draft legislative decree: provisions regarding tax disputes, pursuant to article 19 of law 9 August 2023, n. 111.

After the changes to the regulations, established by law number 130 of 2022, are on the way novelty.

In the press conference on the sidelines of the Council of Ministers, the Deputy Minister of Economy and Finance, Maurizio Leo he explained that the government intends to intervene “pushing a lot on digitalisation” and arranging for hearings “take advantage of the digital channel”.

Some of the innovations will come into force with the publication of the implementing decree, others, the organizational and procedural ones, will apply to the 1st and 2nd degree judgments with notification of the appeal subsequent to 1 September 2024.

Among the new rules foreseen: the abolition of claim and the strengthening ofcomputerization of tax justice.

Litigation reform: how the tax process will change

There are several points that were addressed Cabinet which has just ended.

In addition to the approval of draft legislative decree of implementation of the tax reform on collaborative compliance and the reduction of administrative and criminal sanctions, the Council of Ministers approved the provision relating to the discipline and procedures of tax litigation.

How will it change tax process? There are many new features arriving, some destined to come into force with the approval of the text of the decree, others, instead, to be applied starting from September 2024.

The innovations are in addition to those made operational by the implementing decree of 3 May 2023, relating to the rules on company digital and other related aspects.

The new decree will also do some strengthening the computerization of tax justice and the acceleration of the precautionary phase, two of the key objectives.

Among the other measures, which will have to be confirmed, there is the abolition of the complaint and the deferred effective date for 1st and 2nd degree judgments, the appeal of which is notified after 1 September 2024.

Regarding the powers of the 1st and 2nd degree tax justice courts, changes will be envisaged for thecomplete digitalisation of the procedural system.

Regarding the written testimony it will be expected that the witness with digital signature you can use a specific form that can be downloaded on the website of the Department of Tax Justice and sign it, adding your digital signature (in compliance with the requirements set out in Article 24 CAD) without the need for further authentication.

Litigation reform: what’s new for litigation, intervention and court costs

In terms of technical assistance, with a view to encouraging the digitalisation of the procedural system, the possibility is envisaged delegation to the defenderto be given with digital signature.

The hypotheses of litigation and consortium are also expanded: “in the event of defects in the notification raised in relation to a prerequisite act issued by a person other than the one who issued the contested act, the filing of a charge against both subjects.”

Further specifications are also provided regarding court costs.

Secretarial communications and notifications must be made with telematic methodstherefore enhancing the use of PEC.

With a view to simplification, it is also established that i jurisdictional measures are written clearly and concisely.

If the provisions included in the decree are not modified before entry into force, thechallengeabilityamong others, also of the express or tacit refusal on theself-defense request.

The simplification will also be one of the main criteria of the form of the sentence. In fact, a simplified sentence will be introduced in the following cases concerning the appeal:

• manifests validity;
• inadmissibility;
• inadmissibility;
• unfoundedness of the appeal.

News will also concern the possibility of conduct of the hearing remotely. They will be able to participate remotely:

• taxpayers;
• taxpayer advocates;
• tax authorities;
• the subjects of the collection;
• The Judges;
• the administrative staff of the first and second tax justice courts.

The remote method must be requested in the appeal, in the first defense document or in a specific request notified to the other parties. The time and the connection mode must be communicated by the secretariat at least three days before the hearing.

Finally, with some exceptions, no new evidence or evidence will be admitted production of new documents on appeal.

Generally speaking, the appellate judge is precluded from basing his decision on evidence that could have been arranged or acquired in the 1st degree judgment, with possible exceptions.