Judgment No. 11152 of 2024: Usufruct in Limited Liability Companies

The recent judgment No. 11152 of April 24, 2024, issued by the Court of Cassation, provides important clarifications regarding the usufruct of shares in limited liability companies (LLC) and the tax implications of their voluntary liquidation. The central issue concerns the rights of the usufructuary with respect to the amounts obtained in the event of the company's liquidation, as well as the tax treatment of such amounts.

The Legal Context of Usufruct

In Italian law, usufruct is a real right that allows a person (usufructuary) to enjoy a property owned by another person (bare ownership) and to perceive its fruits. This principle also applies to shares in LLCs. The judgment under review reaffirms that, in the event of the company's liquidation, the amounts distributed to usufructuaries are not simply a reimbursement of the invested capital, but must be evaluated in terms of profit, as established by Article 47, paragraph 7, of the TUIR.

The Implications of the Judgment

Usufruct of shares in a limited liability company - Voluntary liquidation of the company - Difference between the amount due in the event of liquidation and the price paid for the purchase or subscription of the share - Profit - Article 47, paragraph 7, of the Tuir - Usufructuary - Entitlement - Tax relationship - Existence. In the case where the share of a limited liability company is established in usufruct, the amounts obtained from the voluntary liquidation of the company - which constitute, pursuant to Article 47, paragraph 7, TUIR, a profit for the portion that exceeds the price paid for the purchase or subscription of the shares - belong to the usufructuary, with the consequence that the tax relationship concerning such profit arises, in every respect, between the administration and the usufructuary.

This fundamental passage clarifies that, in the event of liquidation, the amounts that exceed the price paid for the purchase of the shares belong to the usufructuary. It is a crucial clarification to avoid conflicts between the rights of the usufructuary and those of the bare owner, especially in contexts of corporate liquidation.

Tax Considerations

Another relevant aspect concerns the tax treatment of the amounts collected by the usufructuary. The judgment establishes that the tax relationship arises directly between the tax authority and the usufructuary, emphasizing the importance of proper management of tax practices related to usufruct. This implies that the usufructuary must be aware of the tax obligations arising from these amounts, especially in a context where tax regulations are continuously evolving.

Conclusions

Judgment No. 11152 of 2024 represents an important clarification in the field of corporate and tax law, highlighting the rights of usufructuaries of shares in LLCs in the event of liquidation. This clarification not only facilitates a better understanding of the dynamics between usufructuaries and bare owners but also provides a useful guide for the tax planning of the parties involved. It is essential for legal practitioners, as well as entrepreneurs, to be aware of these provisions to avoid future issues and to ensure efficient management of their assets.

Bianucci Law Firm