The Court of Cassation has consolidated an important orientation: in the presence of international conventions against double taxation, taxpayers resident for tax purposes in Italy are entitled to the deduction of taxes paid abroad even if the foreign income has been omitted from the declaration.
The Supreme Court of Cassation confirms that bilateral agreements prevail over paragraph 8 of Article 165 of the Tuir, according to which “the deduction is not allowed in the event of failure to file a return or failure to indicate income earned abroad in the return filed”, thus preventing the Italian State from incurring violations of international treaty law.
A significant turning point in terms of taxpayer protection and tax cooperation between countries.
