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Power to audit the accounts payable to shareholders

Published on14 May 2014 Il Sole 24 Ore; Italia Oggi

Overturning the decision made ​​by the lower courts, the Supreme Court, by order no. 10386 of 13 May 2014 has confirmed some tax acts in relation to VAT and income tax notified to a restricted family-based partnership.

In the specifically examined case, the financial administration carried out an investigation, using, in exercising its powers conferred under article 51, second paragraph, nos. 2 and 7 of DPR. 633/1972, the

results of bank accounts in members names.

Company’s economic interests   identified with those of members.

In particular, withdrawal operations found (in the bank accounts) had been ascribed to the company in consideration of a relationship degree existing between the members themselves, a relationship from which it was alleged the substantial overlap of personal interests to those of the Company.

In this context, the position held by the taxpayer, that the bank transactions had been used for family needs of individual members; in this case, it was not substantiated by any allegation concerning the different origins of revenue.

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