Off-the-books profits of companies: the Supreme Court widens the presumption of distribution to shareholders

The Italian Supreme Court confirms and broadens its line on the presumption that off-the-books profits assessed against a closely held company have been distributed: unrecorded profits are presumed to have been paid to the shareholders, unless the contrary is proved.

For shareholders of family-owned s.r.l. companies the exposure is real: an assessment against the company feeds through to the individuals. A defence coordinated across both levels becomes essential, together with building the contrary evidence (no sums received, retentions, reinvestment).

Summary note by Studio Antolini, based on specialised tax sources. The text does not reproduce the original contributions and does not constitute professional advice.