Constitutional Court declares partial unenforceability of Legislative Decree No. 807 of 2020.

Through Ruling No. C-394 of September 9, 2020, the Constitutional Court declared the unenforceability of Articles 1, 2 and 9 (partial) of Legislative Decree No. 807 of 2020, through which reforms had been introduced to the abbreviated return procedure issued on the Social and Ecological Economic Emergency.

As an effect of the decision, the abbreviated return procedure must be understood as extended until the end of the Health Emergency, which according to Resolution No. 2230 of November 27, 2020, issued by the Ministry of Health and Social Protection, was extended until February 28, 2021.

The Court argued that the National Government did not demonstrate that the serious causes of disturbance had disappeared or had been conjured, so it did not find sufficient reasons to declare the constitutionality of the cessation of the abbreviated return process for June 19, 2020.

To the letter the Court said: "a measure that cuts the validity of a mechanism that had previously been found to be conducive to the mitigation of the harmful economic effects of the pandemic cannot also be considered as directly and specifically aimed at avoiding the causes of the disturbance and to prevent the extension or aggravation of its effects, especially when in its motivation there are no reasons that allow identifying some new or unexpected circumstance, which justifies that what in the past was useful to address the crisis, now requires its exclusion or limitation".

Finally, it should be noted that the Ruling declared the constitutionality of the measure introduced on a transitory basis - from June 22 to December 31, 2020 - to reduce to 25% the amount of costs, deductions and deductible taxes that must be supported in electronic invoices to apply to the automatic refund provided for in Article 855 of the Tax Statute. Such percentage will be 85% as from taxable year 2021.