Italian Tax Reform: a possible new vision for Restructuring

On 15 March 2023, we published a contribution on our Insolvency Observatory in which, moreover, we highlighted that LD 13/2023, which entered into force on 24 February 2023, containing provisions for the implementation of the National Recovery Plan and resilience (PNRR), has not introduced, also for the negotiated settlement of the crisis, the institution of the tax settlement, already envisaged for compositions with creditors and for debt restructuring agreements; this introduction would probably have represented the real turning point for negotiated settlement of the crisis.

Anyway, on 16 March 2023 the Italian Council of Ministers approved the draft law delegating the Government for Tax Reform, considered among the priorities identified in the PNRR to respond to the country's structural needs.

About the sector of crisis, article 9 of the Delegation provides that the Government must observe the following principles and specific directive criteria: "extend the discipline of the tax transaction to all the institutes regulated by the Code of the Crisis and Insolvency, introducing the authorization of the Court in case of negotiated settlement of the crisis, as well as all taxes, including local ones, indicating the effects consequent to the presentation of the settlement proposal also extending the cases in which it is possible forced approval".

This mentioned extension, if actually implemented, would represent a turning point in the corporate crisis management system, potentially decisive for giving new force to the negotiated settlement and to the crisis regulation tools envisaged by the Code.