If your company has been the victim of illegitimate tax inspections, you may be entitled to compensation for companies after illegitimate tax inspections. In Italy, tax audits by the Guardia di Finanza and the Revenue Agency are frequent and often highly invasive. However, when these inspections exceed certain limits and violate the fundamental rights of businesses, Italian law and the European Court of Human Rights recognise the right of companies to claim compensation. This article clearly explains what tax inspections are, which rights protect businesses, recent legislative and judicial developments, and what to do to defend yourself and request any compensation.
Table of Contents
What are tax inspections and why can they be illegitimate?
Tax inspections are in-depth audits carried out by Italian authorities — particularly the Guardia di Finanza and the Revenue Agency — to verify the accuracy of companies’ tax returns and the regularity of tax payments. These checks may include access to company premises, verification of accounting and tax documents, seizure of relevant material and, in more serious cases, personal searches and access to electronic devices.
However, there are precise legal limits, especially when inspections become too invasive or violate the right to privacy and the inviolability of the home. Tax inspections can be considered illegitimate when:
- They are carried out without valid justification or without following the procedures established by law.
- They exceed normal working hours, causing unjustified disruption to business activities.
- They violate the taxpayer’s right to defence by denying the assistance of a professional.
- They do not respect the limits set for access to premises and documents.
- They are excessively invasive compared to the alleged irregularity being investigated.
The recent conviction of Italy by the European Court of Human Rights (ECtHR) concerns precisely this issue: the lack of adequate safeguards against tax inspections that violate human rights and the privacy of companies.
Compensation for companies after illegitimate tax inspections: The European Court of Human Rights ruling and its consequences for Italy
In the specific case, the ECtHR condemned Italy for allowing the Guardia di Finanza and the Revenue Agency to conduct inspections that violated the fundamental rights of 13 companies in the province of Foggia. These inspections, which took place between 2018 and 2022, were judged to be invasive and disrespectful of privacy, leading the Court to award each company economic compensation of €3,200.
The Court stressed that the Italian system, as it was structured, allowed excessive and discretionary use of powers of access and control by tax authorities, without sufficient guarantees to protect businesses and taxpayers. This has prompted an urgent regulatory review, aimed at limiting arbitrariness in inspections and strengthening protections for citizens and companies.
Compensation for companies after illegitimate tax inspections: What rights does a company have during tax inspections?
During a tax audit, companies have the right to:
- Be informed of the reasons and subject of the inspection.
- Receive clear communications about the timing and methods of the inspection.
- Be assisted by a trusted professional (accountant, lawyer, tax consultant).
- Have the time limits for access and searches respected.
- Protect their privacy and the confidentiality of data.
- Oppose illegitimate behaviour by the authorities.
In the absence of these rights, companies can take legal action and claim compensation.
Compensation for companies after illegitimate tax inspections: Upcoming legislative changes and what changes
Following the ECtHR conviction, the Italian legislator is required to intervene to update the rules on access and tax inspections. In particular, it will be necessary to:
- Clearly define when and how authorities can enter company premises.
- Establish the conditions that justify searches and seizures.
- Introduce strict limits to guarantee the protection of privacy and human rights.
- Provide oversight measures on the work of tax inspectors.
- Offer more effective verification and protection tools for businesses.
These changes will serve to balance the fight against tax evasion with respect for the fundamental rights of entrepreneurs.
Compensation for companies after illegitimate tax inspections: When can you claim compensation for illegitimate tax inspections?
Companies that have suffered tax inspections that harmed their rights can claim compensation for moral and material damages. This applies especially if:
- The inspections were carried out without the necessary authorisations.
- They caused damage to the company’s image or economic activity.
- Fundamental rights such as privacy or personal freedom were violated.
- Documents were seized in an illegitimate manner.
To obtain compensation, it is essential to accurately document the facts, consult experienced professionals and follow the correct legal procedure.
Compensation for companies after illegitimate tax inspections: How we can help you – the support of Studio Lombardo Larosi
If you fear you have been subjected to illegitimate tax inspections or want to be prepared to protect your company in the event of audits, our studio is at your complete disposal. Studio Lombardo Larosi has long experience in supporting entrepreneurs and professionals in the tax and fiscal sector, offering:
- Detailed analysis of the audits and inspections suffered.
- Assessment of the legitimacy of the procedures adopted by the inspectors.
- Assistance in requesting compensation for companies after illegitimate tax inspections.
- Personalised consultancy to adapt to the new regulations.
- Legal defence and representation in administrative and judicial proceedings.
If you need this service, we can help you concretely to protect your rights and your company. Contact us with no obligation for an initial consultation.
The complexity of Italian legislation and the importance of professional support
Italian legislation on tax inspections is among the most complex in Europe. For this reason, the support of expert tax consultants or specialised lawyers is essential to navigate the rules correctly and prevent disputes.
As Studio Lombardo Larosi, we are committed to assisting you in interpreting current laws and adapting to the provisions that protect your business. Our goal is to shield you from penalties, appeals and problems related to tax audits, offering you up-to-date and targeted advice.
Contact us for information and assistance
If you want to know more about compensation for companies after illegitimate tax inspections or if you have undergone an audit and want to verify the correctness of the procedures adopted, do not hesitate to contact us.
Email: lombardolarosi@gmail.com
Our studio is ready to offer you competent, fast and concrete support.
Summary table: main deadlines and actions to take
| Date/Period | Action to take | Notes |
| Day 1 of the inspection | Verify communication of the reasons and subject of the audit | Inspectors must inform the taxpayer |
| Within 24 hours of the inspection | Request professional assistance | It is advisable to be assisted by a tax consultant or lawyer |
| Within 60 days of the inspection | Assess legitimacy and collect documents | Gather evidence and documents of the inspection |
| Within 6 months of the inspection | Start an appeal or compensation claim | In case of ascertained irregularities |
| Future period (to be defined) | Adaptation to the new regulations after the reform | Follow legislative updates and adjustments |
If you wish, we can also provide you with personalised updates on legislative developments concerning access and tax inspections, to help you best manage your business and regulatory compliance.
Our studio is ready to offer you competent, fast and concrete support.
If you want to know more about compensation for companies after illegitimate tax inspections or if you have undergone an audit and want to verify the correctness of the procedures adopted, do not hesitate to contact us.