The stewardships of Finance Inspectors compartmental direct taxes At district offices of the direct taxes direct taxes For service centers in Rome, Milan, Bari, Pescara, Venice At the provincial directorates of the Treasury Provincial Accounts Offices At the State The General Command of the Guardia di Finanza and for information: to the Presidency of the Council of Ministers for the Ministries at the General Accounting Office at central Accounts Offices of the Ministries at the Directorate General for general affairs and personnel - inspection service at the central service of tax inspectors are recently offered to this Ministry requests designed to learn the tax treatment to be accorded to the sums paid to employees for statutory interest and monetary revaluation of employment claims. These requests were based address recently hired about by the Court of Cassation and on the consideration that the new consolidated law on income tax, adopted by Decree of the President of the Republic December 22, 1986, n. 917, no specific provisions. In this regard it must be stated that, in relation to the problem of the tax treatment of amounts paid to employees by way of monetary revaluation and interest, payable recognized by the Labour Court under Articles 409 and following of the Code of Civil Procedure, in the text amended version of the law 11 August 1973, n. 533, since 1979 (cf. Resolution no. 8/1794 of 31 August 1979) This Ministry had said the eligibility 'to withholding and thus to tax both the monetary revaluation and interest. This 'on the assumption that since the sums acquired in relation to salaries or allowances' arising of the attivita 'labor performed, the same amount could not be considered subtracted to tax and should be taxed the same way as the salary or allowances' which had access, according the principle accessorium sequitur principale. This interpretative approach allowed, in practice, the application to the above sums of separate taxation, both in the case of disputes concerning arrears of salary, and in case of disputes relating to the allowances' severance pay. The judiciary of the work, however, more 'times had gone a different view from the above orientation, believing that the amounts in question are not taxable because' compensation; for more 'party, therefore, it was required the revision of the criteria adopted by the Administration. EXCEPT 'ruling no. 717 of 2 February 1985 (confirmed by the judgment no. 912 of 6 February 1985), the working section of the Supreme Court has changed orientation, compared to the previously adopted judgments, about the non-liability 'of the currency appreciation and recognized the latter subject to withholding by the employer, on the assumption that that upgrading "as an element directly arising from the same working relationship and as part of its overall credit of the lender, and 'necessarily subject to all its legal rules, for 'precisely, the employment credit and what' of course also with regard to the tax regime "(judgment no. 717/1985); what 'resulting framework of monetary inflation within Article. 46, first paragraph, of Presidential Decree of 29 September 1973, n. 597. This' place, it is believed that the point can now speak of ius receptum, as similar ruling confirming taxability 'monetary revaluation and' was made by the Court of Cassation - Section work, with the subsequent judgments n. 4127 of 21 June 1986, n. 3252 of 3 April 1987. Given the previous rulings of the tax authorities and in view of the Supreme Board address competitor, then it must be held now acquired orientation about the enforceability 'of monetary inflation. It should also be noted that, by circular no. 2 / prot. n. 8/040 dated 5 February 1986, the inflation adjustment relating to allowances' severance pay (TFR) and 'been recognized as "other allowances'" and, as such, subject to the relevant criteria for the taxation of Law September 26, 1985, n. 482. The Supreme Court, in its judgment, cited above n. 4127 of 21 June 1986, instead defined the intassabilita 'interests following the liquidation of monetary inflation; nothing decided on the spot in the other judgments cited above, since the question was not raised by the parties. In this regard, devesi altresi 'to emphasize that, with effect from the application of the provisions of the new consolidated law on income tax, adopted by Decree of the President of the Republic n. 917/1986, interests other than those of corresponding nature, indicated in letters a) and b), paragraph 1, art. 41 of the Consolidated Law, are no longer 'subject to tax (arg. Ex letter h), that paragraph 1, art. 41 cited). It ', on the other hand, the interests in question, once recognized their intassabilita' substantial, can be considered otherwise taxable, in the sense, for example, to consider the very nature of monetary inflation (and therefore the income of employees in technical sense), so 'as already' felt, for administrative tax goodwill, by this Ministry. In fact, the Court of Cassation, with sentence no cennata. 4127 of 21 June 1986 stated that unsustainable seems that those interests form as the revaluation, one with the original loan: the interest, being the subject of an autonomous obligation, although ancillary, are not subject to the rule same regime, including tax credit to which access. The confirmation of what 'should also be sought in the specific discipline of withholding tax (art. 23 of the Decree of the President of the Republic n. 600/1973), which provides for the subjection to the same retention only of employment income referred to in Articles 46 and following of the decree of the President of the Republic n. 597 of 1973, items that do not include such income in the relevant interests (cfr., Now, 46 et seq. Of the consolidated income tax, specified above). Therefore, the interests of the species are not subject to any form of taxation. Consequently, the withholding will subject to withholding the amounts due by way of monetary revaluation, sending exempt from withholding the amounts due by way of statutory interest. * * * The stewardships of finance and inspectorates compartmental direct tax issue acknowledgments of this to the Directorate General of direct taxes; District offices of direct taxes and service centers to their stewardships of finance. Minister: COLOMBO