Mercoledì 22 Febbraio 2017 - Aggiornato alle 19:23
Italy and Vatican, the Convention on taxation enters into force
Full transparency between the Italian Republic and the Vatican City State in the field of financial relations. From 15 October 2016, in fact, following the exchange of ratifications, the Convention on taxation, signed on 1 April 2015 by Italy and Vatican, has entered into force.
The agreement promotes the exchange of information for tax purposes between the two countries, implementing the latest international standards, Article 26 of the Oecd Model, and, at the same time, establishes a simplified system of taxation of income and financial assets held, by specific categories of Italian resident taxpayers, in entities professionally carrying out financial activity in Vatican City State. The same taxpayers can also benefit, for the tax years until 2015, of a regularization procedure.
The taxpayers’ categories covered by the Convention - The range of subjects interested by the simplified system of taxation and by the regularization for tax years 2010 to 2015 is made up of individuals and specific entities explicitly mentioned in the body of the text of the Convention. In particular, the Convention applies to individuals and entities with Italian residence and subject to Italian taxes such as clerics, dignitaries, Vatican employees, wage-earners including temporary hires, pensioners of the Holy See and the various ecclesiastical orders — as well as institutes of consecrated life, societies of apostolic life and other foundations and entities.
Regularization timing - Individuals and entities have 180 days from the date of implementation of the Convention to complete the necessary paperwork and send it to the Ior (Istituto per le Opere di Religione). The Vatican Institute will provide for post electronically the requests of regularization within 270 days from the date of implementation of the Convention. For the purposes of completing the procedure, taxpayers must make payments of the amounts due within one year from the date of entry into force of the Convention. The regularization is allowed exclusively if the taxpayers request is received by the Italian Revenue Agency before they had formal knowledge of access, inspections, audits, or other investigation activities or criminal proceedings for violations of tax laws, related to the object of the regularization procedure.
(st.la. - va.ib.)
Enhanced administrative cooperation on tax controls between Italy’s Revenue Agency and Tax Administration of Bavaria
The Joint audit project gets going
It consolidates the collaboration between the Italian Revenue Agency and the Bavarian Administration of Taxation. The administrative and technical exchange of views and information amongst the two partner administrations has been at the center of the two days summit organized in Monaco, which follows of two months the previous meeting held in Milan. The Memorandum signed last July between the two administrations is aimed at enhancing the effectiveness of administrative cooperation tools, strengthening, in particular, cross-border tax audits to reduce the administrative burden for taxpayers. Among the topics addressed in Monaco, the joint audit project and the opening of a jointed work office at the Tax Administration of Bavaria. The conference was attended by the Bavarian Finance Minister, Markus Söder, and the Central Tax Enforcement Director of Italy’s Revenue Agency, Aldo Polito.
The themes of the conference - The first part of the conference focused on the strengthening of fiscal controls by means of administrative cooperation between the two entities. In particular, it was introduced the Joint Audit project for the implementation of joint or simultaneous audits on cross-border tax issues affecting taxpayers, belonging to the same group of companies, based in Italy and Bavaria. The second part of the event focused on the presentation of an office, based in Bavaria, and shared by the two tax administrations, which will allow the members of the Revenue Agency working group to have the necessary spaces equipped to conduct the activities related to the project.