Tax Pills

International Conference on Tax and Development. Held in Germany the meeting about taxation and equity for a sustainable growth
150 representatives of non-governmental organizations, academics and members of civil society met in Berlin, from the 14th to the 16th of June, for the first International Conference on Tax and Development. The Conference was organized by the International Tax Compact (ITC) and the Addis Tax Initiative (ATI ), with the financial support of the Federal Republic of Germany and the European Union. Within the framework outlined by ATI, the main purpose of the meeting was to promote contacts, foster agreements and lay the basis for future collaboration and cooperation among all participants.
The Berlin Conference – The tree-day conference held in Berlin had many purposes: giving the opportunity to developing countries to represent their own needs: providing a valuable occasion to meet and exchange views about the different perspectives and experiences; contributing to the implementation of commitments made by partners in the context of ATI, in particular to double the technical cooperation in  mobilization of domestic resources by 2020.
The  program consisted of different sessions dedicated to ATI main objectives, such as supporting the mobilization of domestic resources, enhancing the domestic resources mobilization in partner countries and ensuring the coherence of sustainable development policies.
The prospects for cooperation – The Berlin Conference was the first occasion for a direct comparison among cooperation actors and tax administrations of partner countries and donors.
ATI set a number of challenging objectives, but the climate of collaboration of the three-day meeting in Berlin raises hopes for the implementation of the commitments made. Berlin has opened a new path for cooperation, the results of which will be submitted at the next meeting, in 2019.
The role of the Italian Revenue Agency –The Italian Tax Administration was also present in Berlin, in agreement with the Ministry of Foreign Affairs and International Cooperation and the AICS (the Italian Cooperation and Development Agency). Fabio Le Donne, for the Ministry of Economy and Finance (MEF) and Cinzia Castelli for the Italian Revenue Agency, took this important opportunity to submit the results achieved by the organization and to share the expertise and experience already gained in supporting less developed Countries. The Revenue Agency during the market place presented its activity with regard to the Tax Capacity Building and the ongoing collaboration and cooperation projects. In particularly, Italian Revenue Agency illustrated the involvement in Albany with reference to the transfer pricing, under the OECD program “Tax Inspector Without Borders”(TIWB) and the experience related to the programme “Fostering Tax Transparency” aimed to the implementation of the Common Report Standard CRS). A great interest was aroused by the recent collaboration of some tax administration, including the Italian Revenue Agency, in the development of the KSP platform (Knowledge Sharing Platform), dedicated to promote the sharing of fiscal information among tax administrations and organisations. The Conference represented the opportunity to submit  the ATI Monitoring Report 2015, a document outlining objectives, strategies and outcomes achieved by the 39 signatory partners of the Addis Tax Initiative in 2015, including Italy. 
ATI and ITC as the new prospects for cooperation – The Addis Tax Initiative, in acronym ATI, was launched during the third UN Financing for Development conference to achieve the objectives set out by Agenda 2030 on Sustainable Development. This is a dynamic action tool, aimed at fostering the growth of developing Countries thorough a more efficient mobilization of domestic resources (DRM). Within this framework there is also the International Tax Compact initiative, in acronym ITC. This is an informal platform designed to “connect” different actors, such as politics, public administrators, civil society and private sector representatives, operating in the fields of taxation and development.  The aim of ITC is to facilitate contacts among these stakeholders and thereby to contribute to achieving the Addis Tax Initiative objectives.
At the start the new fiscal age marked by the adoption of the synthetic indexes of reliability for almost 4 million companies and professionals
Goodbye to the “Studi di Settore” (SdS), an audit method that helped for years Italy’s Tax Administration to distinguish between “auditable” and “non auditable” firms, thanks to the utilization of complex economic and statistical elaborations. It is now time for a new entry on the fiscal scene, that of the innovative synthetic indexes of reliability that will replace soon the old SdS.
The adoption of the new SIRs step by step -  In details, the first step of the normative road followed by the synthetic indexes of reliability has coincided with the Italian Law n. 225 of December 1st 2016. This Law has introduced the new compliance tool, allowing a progressive replacement of SdS. Yet, this change to become effective has had to wait a second normative step, the approval of the last corrective financial maneuver, released last May. Now, the final step will coincide with the publication of an ad hoc procedural fiscal measure, also called Provvedimento, by the Revenue Agency, within next September.
A more effective tool to promote compliance in Italy – In perspective, the synthetic indexes of reliability will promote compliance of the most virtuous taxpayers and will enable a better fight against those non-virtuous behaviors that distort the rules of competition and markets, while improving economic efficiency and tax system’s neutrality in accordance with the recommendations of the main international Institutions, above all, OECD and IMF.
“Studi di Settore” and new synthetic indexes of reliability comparing, or the old and the new compliance model face to face - Whilst the previous SdS system was based upon an estimation of an “adequate” level of revenues and on the consequent possibility for the Italian Tax Administration to perform presumptive controls, the new system takes into account multiple elementary indicators, which regard not only the declared revenues, but also indicators of “reliability” and “anomaly” for a given economic activity. Most important, the new system allows the most reliable taxpayers to access a reward system, which implies several advantages such as shorter deadlines for controls, exclusion from some tax controls and faster procedures for VAT reimbursements. To be clearer, the new approach intends to replace “repression” in favor of a rewarding logic based on cooperation between the Tax Administration and the taxpayers.
The main innovations - The new methodology presents several innovations, with the goal of obtaining estimates that are increasingly precise with regard to the Italian economic context. First of all, the new synthetic tool takes into account the positioning of each taxpayer based upon a series of elementary reliability – on a 1:10 scale – and eventual anomaly – on a 1:5 scale – indexes. At the same time, the indexes of economic normality, formerly used to estimate revenues, they now become elementary indexes to calculate the level of reliability. As far as the estimates are concern, they will concern revenues, value added and income. A new methodology is also introduced for the clusters identification which will contemplates, in details, the reduction of number, a more stability over time and a more solid assignment of the taxpayers to the corresponding cluster. Questionnaires will be also simplify, through the reduction of the information requested. And finally, the estimation of revenues and value added per worker will be made through the utilization of a production function of the Cobb-Douglas type, in logarithmic form, which means a better economic interpretation of the estimated coefficients, elasticity, and results that are closer to the economic reality.
The aims of the new SIRs - In short, the SIR Project is aimed at allowing taxpayers to know their degree of reliability as determined by the Tax Administration. With the goal of reaching tax compliance, taxpayers can also improve or adjust their declaration. They also provide, in case of a high reliability level of the synthetic index, a diversified reward mechanism, in order to ensure a clearer and better relation between the taxpayers and the Tax Administration.

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