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Tax settlement for distressed businesses: a new balance is to be reached

The tax settlement for distressed companies represents a particular composition procedure between the Tax Authorities and taxpayers that can be applied only within arrangement with creditors insolvency procedures and debt restructuring agreements.

This procedure allows taxpayers to reduce and/or defer the payment of their tax debt, in case of both ordinary and privileged credit.

The introduction of the tax settlement procedure represents an innovation in the tax regulation, since, going beyond the general principle of inalienability of the tax credit (i.e., no taxes, duties and contributions due can be in any way exempted from payment), it allows institutions to accept partial or deferred payment proposals.

 

Overview - Tax settlement: its origin and the reasons underlying its widespread publicity

By Alessia Diblio - Manager Bernoni Grant Thornton

The tax settlement for distressed businesses represents a particular settlement procedure between the Tax Authorities and taxpayers, which can be applied only within arrangement with creditors insolvency [...]

 

Expert's opinion - Tax settlement and its potential

By Fabrizio Garofoli - Head of Insolvency Bernoni Grant Thornton

The possibility to “negotiate” with the Tax Authorities and social security institutions is certainly a considerable advantage for distressed entrepreneurs and businesses. As already mentioned, those persons that apply for insolvency procedures [...]

 

Focus on - Tax settlement, the application of the tax cram down gets stricter

By Gabriele Felici - Partner Bernoni Grant Thornton

The business crisis and insolvency code (Legislative Decree no. 14/2019) entered into force on 15 July 2022, replacing insolvency law of 1942, following a long regulatory process and many delays due to the pandemic [...]