Liability of the legal representative of a non-recognized entity for debts relating to previous financial years

The Tax Regional Commission of Calabria, Section III, with its ruling no. 1730 of 17/05/2021, confirmed the judgment of the Italian Civil Supreme Court, Section V, with ruling no. 3093 of 09/02/2021, specifying that:

On the subject of an unrecognized association, in the event of a change in the position of the legally appointed representative, the person who invokes in court the personal and joint liability of the successor pursuant to art. 38 of the Italian Civil Code – who cannot be exempted, for tax purposes, only on the basis of the fact that (s)he was not involved in the previous management of the organization, since (s)he is obliged to draw up and submit the tax return and make adjustments to it, where necessary – (s)he has the burden of proving the elements showing his/her role as representative and/or manager of all or part of the association’s activity, while it is up to the successor to answer for the tax debts – resulting ex lege from the occurrence of the relevant assumption – to demonstrate his extraneousness to the participation and management of the entity in the relevant period of office (Italian Civil Supreme Court, sec. V, 09/02/2021, ord. 3093 Civ, Sec. V, 09/02/2021, ord. 3093). The principle affirmed by the Italian Supreme Court is, therefore, that the successor, taking over the leadership of a non-recognized association, such as the U, is liable for the tax obligations of previous years, even if potentially contracted by the previous legally appointed representative, by virtue of the burden of preparing and submitting the tax return and making, where necessary, the required adjustments.