Categories: Insights, Case Law


2 May 2017

Unfair dismissal: the indemnity paid to the unfairly dismissed manager must be taxed

The Lombardy Territorial Court, with judgement No. 33/33/17, confirmed that the indemnity paid to a manager consequently to unfair dismissal challenged judicially and settled (the Industry Executives National Collective Bargaining Agreement applied to this specific case) is not compensatory in nature and is thus subject to taxation. As a matter of fact, this indemnity may not be considered as compensation paid for damages incurred as its purpose is that of supplementing the assets damaged due to losses or the expenses suffered. It must be seen as a supplementary indemnity and originates from the work relationship, thus referring to loss of earnings. Therefore, the only possibility of exemption from taxation is the demonstration, by the taxpayer, that the disbursement of sums refers only to the “pure compensation” item. In the specific case, instead, it emerged that the reason for subjecting the sums to IRPEF was not the conciliation deed, but rather the judgement of the court of first instance based on which the payslip had been issued.

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