Antonio Sansone

Input VAT Deductibility on Pre-Leasing Payments in Lease-to-Build Contracts

By order no. 28210 of 1 November 2026, the Italian Court of Cassation held that input VAT on pre-leasing payments in lease-to-build contracts is immediately deductible before the physical delivery of the real estate, provided that such expenses are directly…

Written Witness Evidence in Tax Proceedings and Its Operational Limits

Civil Court of Cassation order no. 24407/2026 defines the operating boundaries of written witness evidence in tax proceedings pursuant to art. 7, paragraph 4, Legislative Decree no. 546/1992. Admission is strictly conditioned upon a test of necessity rather…

IRAP Exemption for Legal Practitioners and Autonomous Organization of Capital Assets

Italian original: IRAP per avvocati e beni strumentali: i criteri di esonero

This article examines order no. 26287 of 5 October 2026 delivered by the Italian Supreme Court of Cassation regarding IRAP taxation for lawyers and capital assets. The Supreme Court dismissed the appeal filed by the Italian Revenue Agency, affirming that the…

Prior Adversarial Hearing in Tax Law and Application of the Resistance Test

Italian original: Contraddittorio preventivo tributario: la prova di resistenza

In order no. 7537/2026, the Italian Supreme Court addresses the breach of the pre-litigation hearing obligation in desk audits concerning harmonised taxes under the pre-reform tax framework. The Court clarifies that the failure to initiate a prior discussion…

Tax Assessment Notices: Actual Knowledge Triggers Statutory Time Limits for Appeal

Italian original: Atti tributari: la piena conoscenza avvia i termini di ricorso

In order no. 24973 of 3 September 2026, the Italian Court of Cassation reaffirmed that actual knowledge of a tax assessment notice acquired by the taxpayer outside formal service procedures is equivalent to regular notification for the commencement of…

Allocation and Offset of Litigation Costs in Tax Litigation and the Loser-Pays Rule

Italian original: Compensazione spese nel processo tributario e soccombenza

This paper analyzes Italian Court of Cassation (Tax Section) Order no. 24656 of August 15, 2026, regarding the allocation of litigation costs in tax proceedings. The study investigates the scope of the loser-pays principle under Article 15 of Legislative…

Non-Existent Commercial Transactions and the Burden of Proof in Tax Assessments

Italian original: Operazioni inesistenti e onere della prova nell’accertamento

The Tax Chamber of the Italian Supreme Court of Cassation, with order no. 1310 of January 21, 2026, reinforces the legal framework governing the burden of proof in tax assessments involving subjectively non-existent transactions and the disallowed deduction…

Omission of VAT Return and Substantive Right to Input Tax Deduction

Italian original: Omessa dichiarazione IVA e diritto alla detrazione

This article analyzes Supreme Court Tax Section ruling no. 21812 of 26 June 2026. The Court confirmed that failure to file the annual VAT return represents a formal breach which cannot forfeit the taxpayer's substantive right to VAT deduction under EU…

Brand Sponsorship and Hospitality Expenses: Evidentiary Burden of Commercial Return

Italian original: Sponsorizzazione sul marchio e spese di rappresentanza: l’onere probatorio del ritorno commerciale

This paper analyzes the deductibility of sponsorship expenses following Supreme Court order No. 16230/2026. The decision addresses the boundary between representation expenses (Art. 108 TUIR) and advertising expenses (Art. 109 TUIR), with direct effects on…