No. 980 - The functioning of the tax justice system: microdata evidence from Italy
This paper analyzes the Italian tax justice system and its effects on firms, using data on the entire population of corporations from 2006 to 2022. After outlining the regulatory framework, we examine the system's development and territorial differences, the impact of mandatory mediation, and the characteristics of the firms involved. Finally, using matching techniques and an event-study approach, we assess the effects of tax litigation on corporate performance.
The study highlights a higher concentration of tax litigation in the manufacturing and trade sectors, as well as among firms in southern Italian regions. Involvement in such proceedings is associated with a decline in corporate performance and higher exit rates from the market, particularly for smaller and more indebted firms. Successful companies also experience reduced activity, suggesting that the uncertainty and costs associated with tax litigation have a significant negative impact across the board.
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13 November 2025
(only in italian)
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