Tax Audits: Supreme Court Restores VAT Neutrality, Allowing Deductions Even for Total Evaders

• The Italian Supreme Court (Cassazione) allows VAT deduction even for total tax evaders.
• The principle of fiscal neutrality and inductive reconstruction require symmetry between VAT owed and VAT credit.
• This decision overturns a previously unbreakable dogma in tax law.
• The ruling is seen as a major, surprising development in the field of tax law.

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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