Suspension of VAT credit refund without bankruptcy judge’s authorization: rejection of offsetting

• The Court of Cassation has ruled in favor of the possibility for the Revenue Agency to suspend the refund of a tax credit in the presence of a concurrent debt of the bankrupt company for tax charges.
• This is the case even if the bankruptcy judge has rejected the request for tax offset.
• The case involved the assignees of an VAT credit, requested for refund by the trustee five years after the opening of the bankruptcy procedure.
• The Revenue Agency requested authorization from the delegated judge to offset the credit with the admitted debts, but the request was rejected by the bankruptcy judge.
• The Revenue Agency then suspended the refund pending the resolution of the ongoing proceedings or the presentation of suitable guarantees without time limits.
• The taxpayers appealed against the suspension of the refund, and the Regional Tax Court upheld the appeal of the Revenue Agency.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---