The Story That Seems Impossible — But Isn't
A woman is mugged with violence, remains permanently disabled. She sues in court and obtains a judgment of €1.5 million in her favour. The perpetrators are penniless, have no assets, don't pay a single euro of the compensation. The Revenue Agency then knocks on the victim's door: she must pay the registration tax on the judgment. Approximately €40,000.
No, it's not a legal paradox invented for a quiz show. It's an actual mechanism of the Italian tax system.
The Registration Tax on Judgments: How It Works
Condemnatory judgments — those that order one party to pay a sum to another — are subject to mandatory registration with the Revenue Agency. The registration tax is calculated as a percentage of the amount awarded by the judgment, regardless of whether the sum was actually collected.
Tax Solidarity: Why the Victim Pays
The Civil Procedure Code and tax legislation establish the principle of tax solidarity: all parties to the proceeding are jointly and severally liable for the registration tax. The Revenue Agency can demand the entire tax from any solvent party.
If the convicted parties are penniless, the tax authority turns to whoever has assets — even if it's the victim who won.
The obligation arises from the judgment, not from actual collection. You pay tax on money you've never seen.
The Available Options
- Formally contest the demand, verifying the correctness of the tax calculation
- Check the existence of applicable exemptions
- File a tax appeal
- In extreme cases, evaluate a complaint to the European Court of Human Rights for violation of the right to property
The Lesson Before Starting a Lawsuit
Before initiating a damages action, it's essential to evaluate with your lawyer not only the chances of success, but also the costs connected to winning: legal fees, taxes on judicial acts, and above all, the real solvency of the opposing party.
Winning a lawsuit does not guarantee collecting the sums established by the judge. And in some cases, it doesn't even guarantee you won't end up paying the state for having won.