Compensation of Legal Expenses: Analysis of Order No. 9312 of 2024

In the context of tax law, the issue of compensation for legal expenses is of fundamental importance. Recently, Order No. 9312 of April 8, 2024, provided significant clarifications regarding the necessary requirements for such compensation, establishing clear criteria for judges and the parties involved. The decision of the Court of Cassation focused on Article 15 of Legislative Decree No. 546 of 1992, amended by Legislative Decree No. 156 of 2015, emphasizing the need for an explicit motivation.

Requirements for Compensation of Legal Expenses

According to what was established by the Order, the compensation for legal expenses in tax proceedings is allowed only if the motivations are clear and well-founded. The Court emphasized that it is necessary to provide:

  • Serious and exceptional reasons to support the decision to compensate the expenses;
  • A motivation that is neither illogical nor erroneous;
  • The possibility of reviewing such a decision in court.

This specification is of vital importance, as a lack of adequate motivation can be considered a legal violation, which can be appealed in the Court of Cassation.

The Maxim of the Sentence

Tax proceedings - Compensation of legal expenses under Article 15, paragraphs 1 and 2, of Legislative Decree No. 546 of 1992, as amended by Article 9, paragraph 1, letter f, of Legislative Decree No. 156 of 2015 - Motivation - Explicit indication of serious and exceptional reasons - Necessity - No illogicality or error - Reviewable in cassation. In tax proceedings, the compensation of legal expenses, under Article 15, paragraphs 1 and 2, of Legislative Decree No. 546 of 1992, as amended by Article 9, paragraph 1, letter f, of Legislative Decree No. 156 of 2015, is allowed by explicitly stating in the motivation the serious and exceptional reasons that support it, which cannot be illogical or erroneous; otherwise, it constitutes a legal violation, which can be appealed in court.

This maxim clearly highlights the importance of motivation in the decision-making process regarding the compensation of expenses. The Court of Cassation has therefore reiterated that a lack of adequate motivation can lead to significant legal consequences, making the decision vulnerable to appeals.

Conclusions

Order No. 9312 of 2024 represents an important step forward in defining the rules regarding the compensation of legal expenses in tax proceedings. The need to provide clear motivation and to specify serious and exceptional reasons not only protects the rights of the parties involved but also contributes to ensuring greater legal certainty. Companies and taxpayers should pay particular attention to these requirements to avoid future issues in legal proceedings.

Bianucci Law Firm