Tax Pills

Split payment 2018 with an enlarged audience. Italy’s Revenue Agency clarify the new rules
The special anti-avoidance measure shall apply also to economic public bodies, foundations and companies controlled by Public Administration as explained by the Tax Administration with the  circular-note n.9/E, signed by the Director of the Agency, which illustrates the impact of the new rules introduced by the law n.172/2017. In details, beginning with the extension, for the invoices issued starting from 1 January 2018, of the mechanism of splitting payments to a number of new entities, the circular-note deepens a long list of different fiscal topics. 
Here are the new recipients of the split payment invoices – In the circular-note, the Agency enumerates the new players to whom it is mandatory to issue an invoice with the splitting of payments starting from 1 January this year.
In fact, following the changes made by law n. 172/2017, are also included in the application of the splitting of payments the following entities: 
  • national, regional and local public economic bodies, including special companiesaziende speciali - and public entities providing services to individuals 
  • foundations in which Public Administrations subjects to split payment hold at least 70 percent total interest in the endowment fund (this is the case, for example, of the foundations through which the Professional Associations realize interests related to the professions that represent) 
  • the companies controlled directly or indirectly by the above listed entities and by the companies subject to the split payment 
  • companies in which Public Administrations subject to split payment or bodies and companies under the points hold at least a 70% total interest in the share capital. 
These entities, foundations and companies are added to the subjects already involved in the split payment discipline, such as Public Administrations and listed companies at the FTSE MIB index of the Italian Stock Exchange. 
Trust companies and technical consultants of the office, made light on the last doubts - With today's document of practice, the Revenue delimits the subjective scope of application of the split payment in relation to the two practical cases of shares held by a fiduciary company and the fees due to the office technical consultants (Ctu) who work on behalf of the judicial authorities. In the first case, the Agency states that it is first necessary to assess whether the trusting customer (the actual owner of the company's shares) falls within the split payment, to determine whether the company formally owned by the trust company is included. In the second case, instead, in line with the jurisprudence of the Court of Cassation, the Revenues exclude the applicability of the splitting of payments to the fees and fees paid by the judge in favor of the technical consultant of the office. This is for reasons of simplification, and because the payment of the consultant fee, even if carried out by the Administration of Justice, occurs with money provided by the parties identified by the provision of the judge in the best interests of justice. 
However, the circular-note published by the Revenue Agency reminds that, to facilitate the identification of new subjects included in the split payment regime, the Ministry of Economy and Finance has published on its website, on 19 December 2017, with effect from 1 January 2018, some specific lists allowing VAT taxpayers to verify information relating to transferees/buyers and determine whether to apply the splitting of payments. Based on the clarifications made by the Ministry's Finance Department, the split payment regulation takes effect only from the effective date of inclusion of the entity in the list and its publication on the website of the Department of Finance. 
No penalty for errors from January to today - The Agency clarifies that any incorrect behavior adopted by taxpayers before the publication of the clarifications provided by the circular-note on the changes introduced by January 1, 2018, will not be subject to sanctions, provided that no damage has been caused to the Treasury with the non-payment of the tax due.

Where does all our tax go?
Changing times. Italy’s Revenue Agency has just launched the last information campaign advising that this year millions of citizens who will submit their annual tax return, will be also able to know how the taxes paid have been effectively distributed, either by accessing their “cassetto fiscale” or directly through the pre-filled personal income tax return.
Re-establish the sense that every single taxpayer is part of a larger project than his own door. That’s the project main objective, wanted, planned and realized by the Revenue Agency, is to improve  the sense of citizenship of millions of individuals, their feeling part, and protagonists, of a bigger project. People are too often considered only taxpayers, now they will start fully perceive their status as citizens, not only taxpayers.
The number of interested taxpayers - Approximately 30 million potential taxpayers are involved in the project, 20 of which have adopted the 730 tax-return model and another 10 million the Redditi-Income model.
How to access Revenue Agency information on how your taxes are spent - Starting from the second half of April, on the official website of the Revenue Agency, accessing your “cassette fiscal” or consulting the pre-filled fiscal statement through the web, millions of citizens will know for the first time in their history in dealing with fiscal issues how the taxes collected were effectively distributed thanks to a summary-record that contains the main item and sector of each expenditure.
Within the personal memory-note, you will find how much of the money taken from you in taxes goes on paying benefits, funding public health, social security, education, security, transport, culture, territorial protection and also the share of public debt yearly honored by the Country and, finally, how much tax revenue are addressed to the EU budget, in addition to general public administration services.
How does it works – The modality to illustrate the allocation of taxes has been elaborated on the basis of analytical data on public spending prepared by the Ministry of the Economy and Finance. In addition to IRPEF, a long list of other taxes, among which the tax credits for rent, the solidarity contribution and the substitute tax on premiums, are also included in the total of taxes considered, but only if applicable.
And to prove the point, in the note sent to the media has been explained the case of a single person. This taxpayer paid 10 thousand euros in taxes for 2016. Now, he will know that 2,125 euros have been spent for social security, 1,934 euros went to health, 1,090 euros to education, 882 euros to defense, public order and security, 832 to the services provided by the Public Administration and so on.
Looking inside the personal note - "In the hope of doing something pleasant, - reads the brief introduction directed to each taxpayer – the Revenue Agency wants to give you some information. An information page with which you can summarize how the State has allocated taxes related to your 2017 tax return, for the 2016 fiscal year. Contributing to your community is essential, - it concludes - but we believe it is also important being aware of how the fiscal resources are used ".
All the main items of expenditure of the State are, therefore, summarized in a table and in a "pie chart" through which the taxpayer can concretely verify the path made by the taxes according to their 2017 income tax return.

FiscoOggi è una pubblicazione dell'Agenzia delle Entrate - Ufficio Comunicazione
Testata registrata al Tribunale di Roma il 19.9.2001 con n. 405/2001
Direttore responsabile Claudio Borgnino