TAX LAW
Instructional goals
Firstly, the course is aimed at providing the students with the most relevant concepts of tax law. These concern both the principles and the procedural aspects, with a specific focus on the relationship with the concepts and instruments developed by other branches of law and the relevant case law. Secondly, a part on more specific issues will follow. Personal income tax, corporate income tax and VAT will be analysed in order to provide the students with the knowledge of the basics of the three most important taxes in the Italian tax system.
Intended learning outcomes
Knowledge and comprehension
The training activities carried out aim to develop in the students both legal text analysis skills and to comprehend logical connections within the general part of tax rules and the special parts of tax legislation. The students will be introduced to the professional considerations behind these issues that will then be implemented in the next years of specialization in the field of corporate and tax law for those who will follow that course of studies.
In particular the abovementioned course develops in the students the essential skills to work in the field of taxation as a one of the following professional figures: specialised tax lawyer; accountant, tax law judge; official of both public and fiscal agency, corporate advisor.
In any case, the basic course grants a solid understanding of the theoretical and practical aspects of the subject. The skills will be acquired through both frontal lessons and the constant reference to specific legal cases.
The acquisition of the aforementioned skills will be verified through the positive outcome of the final exam.
Ability to apply knowledge and understanding
Thanks to the constant reference to specific legal cases, allowed also by the text book’s structure, built around application cases and real legal cases with specific boxes providing additional information, the student will acquire the practical aspects of the subject and the ability to orientate himself in its complexity.
Autonomy of judgment
The student will acquire individual critical-analytical skill through the critical comparison, made by both the Professor and the text book, among case law, doctrine and administrative practice.
Communicative Skills
The student will be able to communicate information and solutions to specialised and non-specialised interlocutors as a result of the expertise gained during the course.
Learning skills:
The student will be able to conduct his own business activity putting into practice the notions assimilated during the course.
Course Contents
tax law in the Italian tax system – compulsory contribution, levies and the principle of legality – the ability to pay principle – temporal and spatial limits of tax legislations – interpretation and tax avoidance – national, European and international sources – taxable persons – tax obligation – how to enforce tax obligations – tax return, tax settlement and formal controls – tax audit – assessment phase – tax assessment – internal review of administrative acts, ruling and alternative dispute resolution - personal income tax (IRPEF): general principles and schedular income – business income: notion and general principles – Corporate Income Tax (IRES): general principles – VAT
Reference Books
G. MELIS, Manuale di diritto tributario, 6° edizione, Giappichelli, (published June 2024).
Chapters from I to XVI, from XX to XXII and XXIV, with the exception of:
- chapter III, par. 9;
- chapter VIII, par. 5-6-7;
- chapter XI, section 2;
- chapter XVI, par. 10-11.
Moreover, the programme does not include the boxes in frey included in the book.
Students should know the relevant legislation, and, therefore, they need to buy a tax code. The latter must be updated and include (at least): the Constitution, L. 212/2000 - Taxpayer bill of rights act; T.U.I.R. n. 917/86; d.p.r. n. 633/72 – VAT; d.p.r. n. 600/73 – assessment.
I suggest to buy M. LOGOZZO, Codice tributario, Pacini Editore, 2024.
Teaching Methods
Lectures
Assessment Method
Oral exam: 4 questions on 1) General Principles; 2) Enforcing tax rules; 3) IRPEF/IRES; 4) VAT.
To pass the exam the knowledge of the all four topics is required.
Thesis assignment criteria
As for the thesis, students have at first to have attended the Course.
Once the topic with the professor is defined, the students need to do the following:
1. Preliminary research
2. Preliminary bibliography
3. Reading of the materials
4. Outline
5. Submission of the outline to the professor for his approval
After the approval of the outline, the supervision will start.
Week 1
INTRODUCTION 1. Tax Law in the Italian tax system and the problems of its autonomy and unity. - 2. Tax Law, financial law and public finance
G. MELIS, Manuale, VI ed., Chapter I
COMPULSORY CONTRIBUTIONS, LEVIES, AND THE PRINCIPLE OF LEGALITY - The concept of “levy” and the differences with all compulsory contributions and payments that include a private element. – 2. Revenue and taxes. – 3. The relationship between compulsory contributions and levies. – 4. The classification of levies: taxes, charges, fees and fiscal monopolies. – 5. The principle of legality and the characteristics of a levy.
G. MELIS, Manuale, VI ed., chapter II
Week 2
THE ABILITY TO PAY PRINCIPLE – 1. The ability to pay principle as a legal constraint – 2. Objective application: the difference between divisible and indivisible services. The benefit principle and its residual application. Fiscal interest. – 3. The meaning of the ability to pay principle. -4. The link with other constitutional principles. Tax incentives. The regulatory function of levies – 5. Who is subject to the ability to pay principle: the wording “every person”
G. Melis, Manuale, VI ed., chapter III, par. from 1 to 5.
THE ABILITY TO PAY PRINCIPLE. TO BE CONTINUED. - 6. The requirements of the ability to pay principle. The interplay between the ability to pay and the tax object (logic coherence). -7. Ability to pay and its effectiveness. – 8. The ability to pay principle as an interpretative tool – 10. Progressivity.
TEMPORAL LIMITS OF TAX LEGISLATIONS. 1. Temporal limits of tax legislation and the actual ability to pay principle. – 2. Taxpayer bill of rights act, retroactivity and the principle of legitimate expectations. 3 – Advance tax payments. - 4. Authentic interpretative acts. – 5. Judgments of the Constitutional Court rulings and their effects. – 6. Procedural legislations and the principle of “tempus regit actum”. – 7. Law Decree not converted into law and temporal limits.
G. MELIS, Manuale, VI ed., Chapter III, par. 6 to 8, par. 10, chapter IV
Week 3
INTERPRETATION, TAX AVOIDANCE AND ANALOGY. 1. Interpretation of tax law and art. 12 of the General Preamble to the Italian Civil Cose. 2. Literal interpretation. – 3. Teleological interpretation and tax avoidance.
G. MELIS, Manuale, VI ed., Chapter V, par. from 1 to 3.
INTERPRETATION, TAX AVOIDANCE AND ANALOGY. TO BE CONTINUED. 4. Systematic interpretation. – 5. Analogy and laws imposing taxation. -6. Analogy and laws different from those that impose taxation.
SPATIAL LIMITS OF TAX LEGISLATION. 1. Spatial limits of tax legislation and formal and substantial territoriality. – 2. Personal and objective connecting factors. - 3. International double taxation.
G. MELIS, Manuale, VI ed., chapter V, par. 4 to 6, chapter VI
Week 4
SOURCES OF DOMESTIC TAX LAW. 1. Laws and sources of law. – 2. Primary sources: the ordinary laws of the State, 'delegated' laws, decree-laws. – 3. Regulations and the general administrative acts. – 4. Legislative power of minor entities: the reform of title V of the Constitution and fiscal federalism. – 5 Interpretative acts and the principle of legitimate expectations.
G. MELIS, Manuale, VI ed., chapter VII
SOURCES OF EUROPEAN UNION LAW AND INTERNATIONAL LAW. 1. Sources of European Union Law and their relevance in tax law: a) Treaties, b) The principles; c) regulations; d) directives; e) decisions; f) opinions and recommendations, “soft law”; g) the jurisprudence of the Court of Justice. – 2. European Union law and domestic law. 3 – Sources of international law: international customs and the limits imposed on the legislator. 4 – International treaties and, in particular, double tax conventions, and the limits imposed on the legislator.
TAXABLE PERSONS. 1. Taxable persons: general issues. – 2. Legal capacity in tax law.
G. MELIS, Manuale, VI ed., chapter VIII, par. 1 to 4; chapter IX, par. 1 to 2.
Week 5
TAXABLE PERSONS. TO BE CONTINUED. 3. Legal capacity in tax law. – 4. Withholding agent: preliminary remarks. – 5. Possible problems in the relationships among the withholding agent, the taxpayer and the State. – 6. Tax liability: joint liability. – 7. Formal aspects of joint liability. – 8. Several liability and the procedural consequences. – 9. Tax liable person. – Tax limited liable person.
G. MELIS, Manuale, VI ed., chapter IX, par. 3 to 10.
TAX OBLIGATION. 1. Introduction: the link of tax obligation with civil law and tax law. – 2- Transmission of tax debts and other changes concerning the taxable subjects. – 3 Settlement of the tax liability: payments of the sums due, offset, statutes of limitations, other ways of settlement.
ENFORCING TAX RULES (I). 1. Tax obligation: preliminary remarks. – 2. The different theories on tax obligations. – 3. Tax proceeding and administrative proceeding. – 4. The different phases of enforcing income taxes and VAT. – 5. Guarantees in favour of the taxpayer. – 6. Third party participation in the assessment proceeding.
ENFORCING TAX RULES (II). 1. Tax return: role and general overview. 2. Tax return: nature, effects and amendments.
G. MELIS, Manuale, VI ed., chapter X; chapter XI (section I); chapter XII, par. 1-2
Week 6
ENFORCING TAX RULES (III). To be continued. 3. Self-assessment and formal control of the tax return.
ENFORCING TAX RULES (IV). 1. Preliminary investigation: introduction. – 2. The power to ask for information. - 3. Financial investigations: general elements. – 4. Presumptions and bank accounts.
G. MELIS, Manuale, VI ed., Chapter XII, par. 3; Chapter XIII, par. 1 to 4.
ENFORCING TAX RULES (V). 5. Tax audit: access, inspections and verifications. – 6. Irregularities of the preliminary investigation and their consequences. ENFORCING TAX RULES (VI). 1. The assessment phase and its different methods: introduction. – 2. and 3. Assessment methods for individuals. – 4. Assessment methods concerning book keeping entries - 5. Statistics-based tax assessment. – 6. Inductive method. – 7. Assessment methods within the VAT framework.
G. MELIS, Manuale, VI ed., Chapter. XIII, par. 5-6; Chapter XIV
Week 7
ENFORCING TAX RULES (V). 1. Tax assessment: general remarks. – 2. Tax assessment: its nature. -3. Tax assessment: its effects. – 4. Formal elements of the tax assessment. – 5. Substantial elements. – 6. Partial and supplementary tax assessment.
G. MELIS, Manuale, VI ed., chapter XV
ENFORCING TAX RULES (VI). 1. Alternative dispute resolution. – 2. Ruling. – 3. Voluntary disclosure - 4. Internal review of administrative acts. – 5. The nature of the alternative dispute resolution. – 6. Tax assessment settled before going to Courts. – 7. Settlement concerning the penalties - 8. Acquiescence
G. MELIS, Manuale, VI ed.,chapter XVI, par. from 1 to 10
Week 8
PERSONAL INCOME TAX (IRPEF). 1. Introduction: the nature of IRPEF. – 2. Tax object: income and income ownership
G. MELIS, Manuale, VI ed., Chapter XX, par. 1-2
PERSONAL INCOME TAX (IRPEF) (II). 3. Taxable persons and the concept of tax residence. – 4. Tax base for residents and non-residents. – 5. Different phases to determine the tax due.
G. MELIS, Manuale, 2a ed., Chapter XX, par. 3-5
Week 9
PERSONAL INCOME TAX (IRPEF) (III). 4. Imputed income from the ownership of lands and buildings. – 5. Income from Capital.
G. MELIS, Manuale, VI ed., Chapter XXI, par. 4-5
PERSONAL INCOME TAX (IRPEF) (IV). 6. Wages and salaries. – 7. Income from self-employment - 8. Other income
G. MELIS, Manuale, VI ed., Chapter XXI, par. 6-8
Week 10
PERSONAL INCOME TAX (IRPEF) (V). The definition of business income. - 2. How business income is calculated: from accounting profits to taxable profits. – 3. How business income is calculated: accrual method, business related expenses, costs and expenses and their prior imputation to the profit and loss account. – 3.1. Accrual method.
G. MELIS, Manuale, VI ed., Chapter XXI, par. 1-3.1.
PERSONAL INCOME TAX (IRPEF) (VI). 3.2. Business related expenses. – 3.3. Costs and expenses and their prior imputation to the profit and loss account.
CORPORATE INCOME TAX (IRES). 1. Taxing corporate profits and dividends: the different systems and the Italian choice. – 2. Tax object, taxable persons, tax base, tax rate and taxable period. 3 – tax residence. – 4. Economic activity of the entity. – 5. The participation exemption.
G. MELIS, Manuale, VI ed., Chapter XXI, par. 3.2.-3.3.; Chapter XXII.
Week 11
VAT (I) 1. VAT: an EU tax. – 2. How VAT works ad its tax object. – 3. VAT and its characteristics. Objective element. – 4. Subjective element.
G. MELIS, Manuale, VI ed., chapter XXIV, par. 1-4
VAT (II) 5. Territorial scope. – 6. Chargeable event and chargeability of VAT. – 7. Taxable transactions. Turnover. – 8. Tax base and tax rate. – 9. Pass on and deductions. – 10. Taxable persons and the “reverse charge”. – 11. Formal requirements.
G. MELIS, Manuale, VI ed., chapter XXIV, par. 5-11
Week 12
Q&A sessions
Q&A sessions