Penalties for Unlawful VAT Deductions: Changes Under the New Tax Reform and Sanctions Regime

• The article discusses penalties for taxpayers who make false declarations due to undue VAT deductions.
• The recent Tax Reform and new penalty regime have changed the rules regarding these sanctions.
• The Supreme Court confirmed that Article 5 of Legislative Decree 471/1997 punishes false declarations, specifically when a taxpayer declares a lower amount than owed.
• Article 13 of the same decree punishes failure to pay declared amounts on time, regardless of accounting records.
• If the correct VAT amount is omitted from the annual declaration, both the formal violation and the resulting non-payment are penalized under Article 5, absorbing the lesser penalty of Article 13.

Source: commercialistatelematico.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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