Access to and Tax inspection of business premises: the protection of the European Convention of Human Rights

In its judgment Italgomme Pneumatici v. Italy (6 February 2025), the European Court of Human Rights issued a landmark judgment which has a strong impact on the Italian Tax legal system, but potentially also in other jurisdictions.

The judgment is the latest in a series of decisions of the Court which, taken together, outline the framework of the guarantees ensured by the ECHR to taxpayers in case of access and inspection of commercial premises for tax reasons.

Regarding the case Italgomme Pneumatici, the Court found a breach of Article 8 of the ECHR since it considered that the domestic legal framework regulating access to and inspection of business premises, registered offices, and premises used for professional purposes, with the purpose of assessing compliance with the relevant tax obligations, does not meet the "quality of the law" requirements imposed by the ECHR.

The Court found that, on the one hand, the legislation in question affords "unfettered discretion" to the Revenue Police and the Tax Authority, as it does not clearly regulate the circumstances and conditions on which those authorities can exercise their powers and the scope and content of the contested measures; on the other hand, the Court considered that the same legislation does not provide sufficient procedural safeguards against abuse and arbitrariness, since those measures are not subjected to an effective ex post jurisdictional review.

The Court has therefore indicated to the Italian Government, under Article 46 of the Convention, to adopt general measures aimed at bringing its legislation and practice in line with the ECHR standards.

The judgment might potentially affect all the tax inspections in progress as long as Italy does not amend its legislation.

Giulio Chiarizia
Deputy Director UIA Advance