ECJ Rules Against Italian Advice Centres

by Ulrika Lomas, for LawAndTax-News.com, Brussels

03 April 2006

Ruling on Thursday in the case of Servizi Ausiliari Dottori Commercialisti Srl v Giuseppe Calafiori, the European Court of Justice stated that Italian tax advice centres’ exclusive right to complete workers’ declarations of income is contrary to Community law, as it constitutes an unjustified restriction on the freedom of establishment and the freedom to provide services.

Italian legislation reserves exclusively to Tax Advice Centres (CAF) the right to pursue certain activities of advice and assistance in tax matters, including activities relating to the annual declaration of the income of employees and persons treated as such.

CAF can be set up only by certain bodies, and carry on their business under authorisation from the Ministry of Finance. They receive a payment from State funds for each declaration completed and filed with the tax authorities.

The object of ADC Servizi, a company established in Milan, was assistance and the provision of advice in accounting and administrative matters. In 2003, it adopted new statutes in order to take account of the fact that it was also carrying on activities of tax assistance for undertakings, workers and pensioners.

The notary responsible for taking the minutes of the meeting which adopted the new statutes, Mr Calafiori, refused to file that decision in the Milan companies’ registry. In his view, the amendment to the statutes authorising the company to carry on those tax assistance activities was contrary to the Italian legislation on CAF.

Since it considered that legislation to be contrary to Community law, ADC Servizi brought proceedings before the Italian courts against the refusal of its registration.

In that context, the Court of Appeal of Milan referred questions to the Court of Justice of the European Communities for a preliminary ruling.

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