Commentary on Judgment No. 44311 of 2024: Tax Crimes and Obligation to Declare

Judgment No. 44311 of October 8, 2024, issued by the Court of Cassation, addresses a crucial issue in the field of tax crimes: the obligation to declare income derived from illicit activities. This decision is situated within a constantly evolving legal context, where fiscal transparency and the legality of income are increasingly at the center of regulatory and jurisprudential attention.

The Regulatory Framework

According to Article 14, paragraph 4, of Law December 24, 1993, No. 537, income derived from illicit activities is considered taxable income. This implies that individuals who obtain such income are required to declare it in their tax return and pay the taxes due. The judgment under comment confirms this principle, establishing that the omission to declare such income constitutes the crime of fraudulent tax return, pursuant to Article 4 of Legislative Decree March 10, 2000, No. 74.

Consequences of Failure to Declare

The Court clarified that the crime of fraudulent tax return is established if the income has not been subjected to seizure or criminal confiscation in the same tax period. This aspect is fundamental because, otherwise, it leads to a reduction in taxable income, in accordance with the principle of ability to pay enshrined in the Italian Constitution.

Tax crimes - Income derived from illicit activities - Article 14, paragraph 4, Law No. 537 of 1993 - Obligations to declare and pay - Existence - Consequences - Crime of fraudulent tax return pursuant to Article 4 of Legislative Decree No. 74 of 2000 - Configurability - Exception - Reasons - Factual circumstances. In the context of tax crimes, income from crime falls, pursuant to Article 14, paragraph 4, of Law December 24, 1993, No. 537, within the categories of taxable income referred to in Article 6, paragraph 1, of Presidential Decree December 22, 1986, No. 917, and is therefore subject to the consequent obligations to declare and pay. Thus, its omission in the tax return for individuals constitutes the crime referred to in Article 4 of Legislative Decree March 10, 2000, No. 74, if it has not been subjected to seizure or criminal confiscation in the same tax period in which the taxable event occurred. In such an event, in accordance with the constitutional principle of ability to pay, a reduction in taxable income occurs. (See: Cass. civ., No. 28375 of 2019, Rv. 655895-01). (Factual circumstances relating to the omission to declare income from the crime of embezzlement, already subject to preventive seizure for confiscation of the proceeds of the crime in a tax year different from the one subject to the declaration in question).

Conclusions

In summary, judgment No. 44311 of 2024 underscores the importance of fiscal transparency and the responsibility of taxpayers in declaring income, even if derived from illicit activities. The Court of Cassation reiterates that legality and fiscal honesty are fundamental principles that must guide the actions of every economic entity, highlighting how the omission of these duties can lead to significant criminal consequences. Therefore, it is essential for professionals and taxpayers themselves to be aware of their responsibilities in tax matters.