Causes of Termination and Lapse of the Biennial Preventive Concordat

For all customers who have entered into the Biennial Preventive Arrangement, pursuant to Articles 21 and 22 of Legislative Decree 13/2024, certain specific causes of forfeiture and termination of the effects of the CPB are provided for.

In particular, the Concordat ceases to have effect from the tax period in which one of the following conditions occurs:

• the taxpayer modifies the activity during the two-year period of the arrangement compared to that exercised in the tax period preceding the two-year period. Termination does not occur if the same ISA applies to new activities;
• the taxpayer cease activity;
• the taxpayer adheres to the flat-rate regime (where applicable);
• the company or entity is affected by extraordinary transactions merger, demerger, contribution;
• the company of people or the association without legal personality is affected by changes in the corporate structure increasing the number of members or associates;
• the taxpayer declares revenues exceeding euro 7,746,853.50 (excluding proceeds from the sale of stocks, bonds or shares, or other securities or similar financial instruments, which do not constitute financial fixed assets).

Instead, the Concordat ceases to have effect for both of its tax periods in the following cases:

1. the existence of undeclared assets or the non-existence or non-deductibility of declared liabilities for an amount exceeding 30 per cent of the declared revenue in the tax periods subject to the arrangement or in the preceding tax period, or other violations of no minor importance. They are considered to be not minor:
   1. the breaches of Legislative Decree 74/2000 (fraudulent, false or omitted declarations, issuance of documents for non-existent transactions, concealment or destruction of accounting documents or failure to pay certified withholding taxes, failure to pay VAT and undue compensation in excess of the thresholds provided for, as well as any other offence referred to in the same Decree) in relation to the tax periods covered by the Arrangement;
   2. the inaccurate or incomplete reporting of data relevant for the application of ISA to such an extent that it results in a lower income or net value of production subject to the Arrangement by more than 30 per cent;
   3. failure to file income tax and regional business tax returns, substitute tax returns or annual VAT returns (Articles 1(1), 2(1) and 5(1) of Legislative Decree 471/1997) relating to the years covered by the arrangement;
   4. the failure/not timely electronic storage and telematic transmission of the data on receipts or when such data are incomplete/untrue or the failure to issue tax receipts, tax receipts or transport documents or the issuance of such documents for amounts lower than the real amounts (Article 6(2-bis) and (3) of Legislative Decree No. 471/1997), contested in a number equal to or greater than three, committed on different days;
   5. the removal from inspection and verification of documents, registers or accounting records (Article 9(2) of Legislative Decree 471/1997);
   6. failure to install or tampering with the devices for issuing tax receipts or the use of them (Article 11(5) and (5-bis) of Legislative Decree 471/1997 and Article 2 of Law 18/1983);
2. when, following amendment or supplementation of the tax return, the declared data and information result in a different quantification of income or net production value than those on the basis of which the acceptance of the proposal for composition took place;
3. data are indicated in the tax return that do not correspond to the data disclosed for the purposes of the arrangement proposal;
4. it is established that one of the requirements for access to the CPB set out in Articles 10 and 11 of Legislative Decree 13/2024 is not met;
5. the payment of the sums due as a result of automated control activities by the Revenue Agency is omitted.

The infringements referred to in subparagraphs (a)(1) and (2) and (e) are not relevant for forfeiture purposes in the event that the taxpayer has regularised its position by means of repentance, provided that the infringement has not already been ascertained and in any event no accesses, inspections, audits or other administrative verification activities of which the perpetrator or the persons jointly liable have had formal knowledge have begun.

In the event of forfeiture of the arrangement, taxes and contributions determined taking into account the agreed income and net production value remain due if they are higher than those actually achieved.

While remaining at your disposal for any doubts or requests for clarification, we would like to take this opportunity to extend our best regards to all.