Professional Liability of Accountants: The Naples Court of Appeal Ruling
The recent ruling no. 2408 of May 31, 2024, by the Naples Court of Appeal offers significant insights into the professional liability of accountants and the management of evidence in tax contexts. The Court examined a case where an entrepreneur, P1, sued his accountant, C1, for damages arising from an error in managing VAT refund procedures.
The Case and the Nola Tribunal's Decision
In the first instance, the Nola Tribunal had recognized the accountant's liability, but limited the compensation to only the penalty damages imposed by the Revenue Agency, amounting to 7,409 euros. P1, dissatisfied, then filed an appeal, contesting the assessment of evidence and the amount of damages.
The liability of an accountant presupposes a breach of the duty of average diligence required under Article 1176, second paragraph, and Article 2236 of the Italian Civil Code.
Grounds for Appeal and the Court's Response
The Court of Appeal upheld the appeal, overturning the first-instance judgment. It highlighted the importance of evidence in tax matters, emphasizing that professional diligence requires the accountant to manage tax procedures with the utmost care. In particular, the judge found that the Nola Tribunal had erred in deeming unreliable certain witnesses, who were related to the parties involved.
- The accountant must ensure adequate assistance to the client.
- The burden of proof for contractual non-performance lies with the professional.
- The average diligence required is that of a qualified professional.
Conclusions
The ruling by the Naples Court of Appeal reiterates the need for a rigorous assessment of evidence in matters of professional liability, stating that family ties cannot automatically compromise the credibility of witnesses. This decision represents an important precedent for professionals in the sector, highlighting the importance of diligently carrying out entrusted tasks and adequately documenting communications and procedures managed to avoid detrimental consequences for their clients.
