Professional Liability of Accountants: The Ruling of the Court of Appeal of Naples
The recent ruling No. 2408 of May 31, 2024, from the Court of Appeal of Naples provides significant insights into the professional liability of accountants and the management of evidence in tax contexts. The Court examined a case in which an entrepreneur, P1, sued their accountant, C1, for damages arising from an error in handling VAT refund applications.
The Case and the Decision of the Court of Nola
In the first instance, the Court of Nola had acknowledged the accountant's liability, limiting the compensation to only the sanctions imposed by the Revenue Agency, amounting to 7,409 euros. P1, dissatisfied, then appealed, contesting the assessment of the evidence and the amount of damages.
The responsibility of the accountant presupposes a violation of the duty of average diligence required under Article 1176, second paragraph, and 2236 of the Civil Code.
The Grounds of the Appeal and the Court's Response
The Court of Appeal upheld the appeal, reforming the first-instance ruling. It highlighted the importance of evidence in tax contexts, emphasizing that professional diligence requires the accountant to manage tax matters with the utmost care. In particular, the judge found that the Court of Nola had erred in deeming certain witnesses unreliable due to their familial ties 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 of the Court of Appeal of Naples reiterates the necessity for a rigorous evaluation of evidence in matters of professional liability, asserting that familial ties cannot automatically compromise the reliability of witnesses. This decision represents an important precedent for professionals in the field, highlighting the importance of diligently executing entrusted tasks and adequately documenting communications and managed practices to avoid harmful consequences for their clients.
