ECHR Finds Italy Violated Privacy Rights by Allowing Tax Access to Bank Data
The European Court of Human Rights (ECHR) ruled that Italy violated the right to respect for private life under Article 8 of the European Convention on Human Rights by allowing tax authorities to access individuals’ banking data without prior judicial authorization or notifying the taxpayers. The case focused on Italian laws permitting tax officials to obtain banking information directly from financial institutions, raising concerns about privacy and administrative discretion.
The Court acknowledged that accessing bank data interferes with private life but emphasized that such interference can only be justified if the law clearly limits administrative discretion and provides sufficient procedural safeguards. Although Italian legislation formally regulated access to banking data, the provisions were deemed too vague, granting tax authorities nearly unrestricted discretion. Internal administrative guidelines, while more detailed, were not binding, and domestic courts did not require tax authorities to justify their decisions to access bank accounts.
Italy also failed to provide effective means for individuals to challenge these measures after the fact. The ECHR found that appeals to tax courts were ineffective because authorizations to access bank data were considered preliminary acts not subject to independent review. Civil courts offered uncertain remedies, and complaints to the Taxpayer’s Guarantor did not provide binding decisions. Consequently, the Court rejected the Italian Government’s claim that the applicants had not exhausted domestic remedies.
The Court concluded that these issues were systemic and rooted in the content and interpretation of Italian law. Italy was urged to implement general measures to align its legislation and practices with human rights standards. Specifically, the law should clearly define the conditions under which bank data may be accessed, require authorities to provide reasons for such actions, and ensure timely and effective judicial or independent review.
