Costs incurred by the fictitious intermediary are deductible
In the event of a tax assessment for fictitious interposition, the costs incurred by the interposed person must also be charged to the taxpayer, provided they were actually incurred.
If the Agency does not limit itself to establishing the interposition, but increases the declared income, the interposing party may prove the existence of any additional undeclared costs, provided they have been effectively incurred.
This was the ruling of the Court of Cassation 29228/2021.
Dario Augello talked about it in the article “Deductible costs incurred by the fictitious intermediary” on Eutekne.