Beneficial Ownership Registers: CJEU Strengthens Privacy and Data Protection Safeguards
The Court of Justice of the European Union has clarified the conditions under which access to beneficial ownership registers may be granted, reaffirming the need to strike an appropriate balance between anti-money laundering objectives and the protection of fundamental rights.
According to the Court, access to beneficial ownership information cannot be granted on a general or unrestricted basis. Instead, applicants must demonstrate a legitimate, specific and current interest. While confirming the legitimacy of transparency measures aimed at preventing money laundering and terrorist financing, the Court emphasized that access to such information must be accompanied by adequate procedural safeguards for the beneficial owner.
A key aspect of the ruling is the recognition of the right to effective judicial protection. Where exceptional circumstances exist, beneficial owners must have access to legal remedies capable of preventing disclosure until a court has assessed whether publication of the information could result in disproportionate harm to their private life.
The Court also confirmed the compatibility with EU law of national rules requiring trusts and similar legal arrangements to comply with beneficial ownership disclosure obligations, including fiduciary structures capable of separating legal ownership from beneficial ownership.
Corporate Criminal Liability and Workplace Accidents: No Automatic Liability under Legislative Decree 231/2001
In judgment No. 18643/2026, the Italian Supreme Court clarified that the occurrence of a workplace accident does not automatically trigger corporate liability under Article 25-septies of Legislative Decree No. 231/2001.
The Court reaffirmed that corporate liability requires proof of an organizational fault (“colpa di organizzazione”), namely deficiencies in the company’s governance, compliance framework, or internal controls designed to prevent breaches of workplace health and safety regulations.
The case concerned a serious accident at a railway construction site. The Supreme Court overturned the company’s conviction, holding that the lower courts had failed to determine whether the accident resulted from a broader corporate policy characterized by systematic non-compliance with safety regulations or by cost-saving practices pursued at the expense of workplace safety.
The decision confirms that liability under Legislative Decree 231/2001 requires a separate and autonomous assessment from that concerning the individuals involved in the underlying offence, while also highlighting the continuing importance of effective compliance and organizational models.
Constitutional Court Confirms Ten-Year Limitation Period for State Taxes
In judgment No. 85/2026, the Italian Constitutional Court confirmed the applicability of the ordinary ten-year statute of limitations to the collection of state taxes.
The Court upheld the long-standing position adopted by the Supreme Court, according to which, in the absence of a specific tax provision, tax claims relating to major state taxes—including corporate income tax, personal income tax, VAT and regional business tax—are subject to the general ten-year limitation period established by the Civil Code.
The Constitutional Court rejected arguments in favour of the shorter five-year limitation period applicable to recurring obligations. According to the Court, each tax period gives rise to a separate and autonomous tax obligation, preventing state taxes from being classified as periodic obligations under civil law principles.
The ruling provides further certainty in tax collection matters and confirms the extended timeframe available to the tax authorities for enforcing outstanding tax claims. Penalties and tax interest, however, remain subject to a five-year limitation period.
Tax Deductibility and Economic Rationality: Increased Scrutiny of Business Decisions
With Order No. 12400/2026, the Italian Supreme Court revisited the relationship between tax deductibility and the concept of economic rationality, introducing considerations that may significantly affect future tax assessments.
While reaffirming that the deductibility of costs should be assessed on the basis of their connection with the business activity rather than their profitability, the Court stated that a “manifest lack of economic rationale” may constitute evidence that a cost is not genuinely related to the taxpayer’s business.
The decision places particular emphasis on factors such as unusual contractual arrangements, economically unreasonable terms, and transactions involving related parties, viewing them as potential indicators of a lack of business purpose.
The ruling reflects a broader trend toward increased scrutiny of the economic substance underlying corporate transactions. Businesses should therefore ensure that significant commercial decisions, particularly those involving intra-group arrangements or non-standard transactions, are supported by clear business justifications and appropriate documentation.
Tax Assessments Invalid Where New Allegations Are Raised Without a New Right to Be Heard
The First Instance Tax Court of Vicenza has ruled that a tax assessment may be invalid where the tax authorities rely on allegations that were not included in the original draft assessment notice submitted to the taxpayer during the pre-assessment phase.
In the case at hand, the tax authorities introduced new objections during settlement proceedings, without providing the taxpayer with a renewed opportunity to respond. The Court held that this approach violated the taxpayer’s right to prior consultation and defence.
According to the judgment, the principle of prior adversarial proceedings established by Article 6-bis of the Italian Taxpayer’s Bill of Rights requires that taxpayers be fully informed of the allegations against them and be granted a meaningful opportunity to present their observations.
Where new issues emerge during the administrative process, the authorities must therefore restart the consultation procedure through the issuance of a new draft assessment notice. The decision further reinforces the growing importance of procedural safeguards in Italian tax law and confirms that compliance with due process requirements is essential to the validity of tax assessments.