strongly putting pressure on individuals
and companies that hold financial
businesses and properties undeclared
to their own countries. In October
2014, at the Organisation for Economic
Co-operation and Development (OECD)
Global Forum on Transparency and
Exchange of Information for Tax
purposes in Berlin, 51 countries signed
for the adoption of a new global standard
that will allow an automatic exchange of
information about taxpayers' positions
starting in 2017.
This initiative is focused on the
fight against tax havens, granting at the
same time the possibility of recovering
resources held abroad, thus not available
for internal and legal investments.
This aim is a main interest of Italy,
since it is estimated that businesses
in the amount of 150 billion euros are
currently illegally held abroad by Italian
taxpayers.
Italy, with this aim and on the basis
of the legislative experience of other
United Kingdom, Germany and France),
approved a Voluntary Disclosure
procedure in December 2014.
As per other countries' similar
laws, the Italian Voluntary Disclosure
procedure will not allow any reduction
on unpaid taxes, but will grant reduced
administrative penalties and the
exclusion from a quite extensive list
of criminal liabilities. The Voluntary
Disclosure will apply to undeclared
financial activities and properties up to
September 2014.
Together with the Voluntary
Disclosure procedure and in order
to increase its attractiveness, Italy is
entering international agreements with
main tax havens in order to grant a full
exchange of tax and financial information
with regard to the businesses held by
Italian taxpayers in such tax havens.
Furthermore, Italy has introduced the
new crime of self-laundering. Pursuant
to this new crime, individuals who use
money or goods originating from an
illegal activity that they contributed to
punishable with a fine and from two to
eight years of imprisonment.
Voluntary Disclosure is possible
for individuals, entities, partnerships
and corporations, with tax residence in
Italy. It is therefore available also for
foreign corporations with a subsidiary or
a branch in Italy in order to legalize the
position of the Italian entity with regard
to businesses illegally held abroad, but
most of all, in order to free the managers
(possibly foreigners) of criminal liability.
In addition, according to the draft form
prepared by the Italian Tax Authority, it
seems that Voluntary Disclosure will also
apply to undeclared businesses held in
Italy and not only abroad.
It is mandatory that the taxpayer (or
any jointly liable person) is not aware of
any tax audit pending with regard to the
assets subject to disclosure. Moreover
the procedure can be implemented only
once for each taxpayer.
The taxpayer will have to submit
to the Italian Tax Authority all the
experience in tax law, with a strong focus on tax litigation and
cross-border tax issues. He has successfully assisted many
Italian and international groups and corporations in their tax
litigation and restructuring issues.
practicing as a qualified chartered accountant, he mainly advised
industrial and financial companies on corporate and tax matters.
He actively dealt with purchase and transfer of shares, direct
and indirect mergers, transfers and divisions of going concerns.
He performed appraisals for several industrial and financial
companies.
Piazza Borromeo
Milan, Italy 12-20123
+39 02 805 2565 Fax
m.salvatore@deluca1974.it
deluca1974.it