Tax & Legal

In a recent decision, the Supreme Tax Court held that the transport of sparkling wine under suspension of the due tax to another Member State is not hindered if the demand for security previously determined by the main customs office and paid by the sender does not cover the full amount of the valid state tax for sparkling wine that may arise.

The Supreme Tax Court believes that interest of 0.5 percent per month levied in the event of suspensions of payment is unconstitutional. This interest is charged if an appeal against a tax assessment is unsuccessful, and the tax office therefore no longer grants a stay of execution. The Federal Constitutional Court is now asked to deal with the preliminary request and provide its final opinion.

Prepared by Alessandro Caridi and Flavia Barone

The Supreme Tax Court has serious doubts as to the appropriateness of the current fixed rate of interest on late payments which is levied at a rate of 6 per cent per annum. This is especially relevant when considering the generally low interest rates level which have been charged in the market for some considerable time.