Tax proceedings must also comply with the reasonable-time requirement where they concern penalties that are criminal in substance because they are intended to deter and punish tax infringements.
In its Judgment of 8 October 2026 in Grassucci and Others v. Italy, the European Court of Human Rights found a violation of Article 6 § 1 of the European Convention on Human Rights in respect of tax proceedings that had lasted, across three levels of jurisdiction, between eight years and nine months and twenty-four years and seven months.
The disputes concerned tax assessments accompanied by penalties. In some cases, the taxpayers had unsuccessfully sought compensation under Italy’s Pinto Law: the domestic courts had held that the Convention’s safeguards did not apply because the penalties could not be equated with criminal sanctions.
The Strasbourg Court rejected that approach. Neither a penalty’s classification as administrative under domestic law nor its modest amount is, in itself, sufficient to exclude the application of Article 6. The nature of the measure is central: in the cases examined, the penalties arose under provisions applicable to taxpayers generally and served both deterrent and punitive purposes, which were sufficient to bring them within the criminal limb of Article 6.
The Court also clarified how the duration of proceedings should be calculated: the relevant period begins when notice of a tax assessment or adjustment accompanied by penalties is served, rather than when the subsequent court challenge is brought. Whether the duration is reasonable must then be assessed in light of the complexity of the case, the conduct of the parties and the authorities, and what is at stake for the taxpayer.
The Court further held that the remedy provided by the Pinto Law, as interpreted by the domestic courts, was ineffective, and awarded compensation for non-pecuniary damage. It nevertheless specified that, for relevant domestic proceedings concluded after this judgment becomes final, taxpayers will be required to pursue the domestic remedy before applying to the Strasbourg Court.
