Industry News

Italy reopens tax amnesty for domestic as well as offshore assets

Monday, 9 January, 2017

Italy's re-launch of its tax amnesty began on 1 January.

Unlike the previous disclosure opportunity, which closed on 30 November 2015, the 2017 programme covers undeclared domestic assets such as cash and bearer bonds in safe deposit boxes, as well as offshore assets.

The 2015 amnesty revealed EUR60 billion in previously undeclared offshore funds, and produced EUR4 billion of extra tax revenue from 130,000 residents.

The current tax amnesty was first announced in the 2017 Budget last October. Under its terms, taxpayers are being invited to make their own calculations of how much they owe the Agenzia delle Entrate (tax office), including sanctions and additional taxes. Taxpayers wishing to take part in the tax amnesty must also open their deposit box (or wherever else the undisclosed assets are hidden) in the presence of a notary, who will sign a witness declaration. The taxpayer will sign a declaration of the origin of the undisclosed funds. El Sole reports 'the risk of money laundering in this environment is so high that the [amnesty] establishes a new crime of false declaration with a punishment of between 18 months up to six years in prison to add to that of any underlying crimes discovered.' A bank account must immediately be opened to guarantee payment of the tax due.

The disclosure window remains open until 31 July this year. Individuals who declared offshore assets in the 2015 amnesty may only participate if they are also declaring domestic assets.


Subscribe to news digests

News Search