The OECD has always recognized the importance of offering taxpayers the opportunity to become compliant and has encouraged governments to enable people who want to regularise their tax affairs to declare the income and wealth they have concealed in the past. Voluntary disclosure programmes offer such taxpayers a way to do this and for governments a way to secure payment of missing revenue, using relatively limited administrative resources. Costanzo & Associati helps all taxpayers fiscally resident in Italy to regularize not declared investments .
On October 24th, 2016 was released the Decree Law. 193. The second chapter II, art. 7 of the Decree concerns the reopening of the terms of the voluntary disclosure’s procedure. All taxpayers fiscally resident in Italy have the opportunity to regularize not declared investments held abroad and taxable incomes of Italian source. The regularization of their investment’s position will be considered complete after either a physical, or legal repatriation. Concerning cash and valuables held in safe deposit boxes, the taxpayer will necessarily be supported by a public notary, who will assist at the opening and execute the inventory of the safe deposit box’s content.
Until July 31st, 2017 taxpayers will be able to collaborate by submitting spontaneous request, if and only if he or she did not previously submitted the request during the previous collaboration’s procedure. Within September, 30th 2017 taxpayers will be allowed to provide additional documentation.
Authors of violations can procure spontaneously the payment regarding taxes, withholdings, interests and contributions until September, 30th 2017. This seems to be a great newness with reference to the previous procedure. The payment will be split into 3 instalments of equal amount each. The first instalment shall be paid within September, 30th 2017. If not, within December, 31st 2018, the Italian Tax Authority proceeds by notifying to the taxpayer all sanctions and committed violations regarding the collaboration procedure. Potential reductions on violations will, hence, be reduced. If taxpayer commit errors, an additional sanction equal to 3% or 10% will be applied. This is valid, if mistakes go beyond the 10% of expected formal mistakes and over 30% for other kinds of errors. Taxpayers will be requested to certify the source of their financial activities, which must not come from fiscal crimes and money laundering. Untruthful declarations during the collaboration procedure will cause legally penal consequences.
For those, that have paid more than required, the Italian Tax Authority allows to use the exceedance for compensations or to ask its reimbursement.
The 3% sanction, reducible to 0.5%, will be applied to financial activities held in countries, which had signed information sharing agreements within March, 1st 2015, and in all countries where an information sharing agreement became law within October, 24th 2016. Essentially, this is referred to countries belonging to the “White List”.