Italian Supreme Court Holds Treaty Relief Cannot be Denied for Failure to Declare Foreign Income

The Italian Supreme Court (Corte di Cassazione) has issued Ordinance No. 16134 of 25 May 2026, confirming that relief from double taxation under the Italy-Germany income and capital tax treaty may not be denied solely because the taxpayer failed to file an Italian tax return or failed to report the relevant foreign income in the return filed.

The case concerned Italian personal income tax (IRPEF) assessment notices for the 2007 and 2008 tax years issued to an Italian resident taxpayer in res…