Tax Pills

Google and the Italian Revenue Agency. The fiscal peace will be worth more than 300 million euros. The Web-giant will pay over 306 million euros to the Revenue Agency
Italy’s Revenue Agency and Google have just signed the tax settlement to solve potential tax disputes concerning the fiscal investigations, conducted by the “Guardia di Finanza” – Italy’s Financial Police - and co-ordinated by the “Procura” – Prosecutor’s Office - of the Republic in Milan, for the period between 2009 and 2013.
Google will pay a total of over € 306 million, including the amounts referring to the 2014 and 2015 biennium and to an old dispute over the 2002-2006 period. The amounts refer to both Google Italy and Google Ireland.
Looking to the future of the new fiscal relation - With Google will also start a process towards the adoption of advance tax rulings for the correct taxation in Italy of future activities conducted in our country.
Today’s tax agreement in details - In particular, the account to be paid with the Italian Revenue is around 300 million euros, 306 to be more specific. This will be the price that Google will pay to sanction a tax dispute arising from unpaid taxes on a total turnover of 1 billion euros of gross revenues between 2009 and 2013. After more than 1 year of negotiations, today has been signed the definitive fiscal agreement between the tech giant and the Revenue Agency. It is an ad hoc tax settlement that will decree the final peace between Google and the Italian State.
Not only just a current fiscal victory - The agreement that will also recognize the stable organization in Italy of Google, will allow in future years the Revenue Agency to collect the Web giant taxes more commonly. Put differently, Italy’s Revenue Agency will keep collecting regularly the taxes due also in the coming years. And this is not a little or an occasional fiscal gain.
The advance tax ruling at glance – This institute has been specifically and factually devised by countries of common law. The main aim is to give taxpayers the possibility to obtain a preventive and written opinion, in this case by the Italian Revenue Agency, providing the correct application of specific tax provisions.
Particularly, qualifying persons are both resident and non-resident taxpayers entitled to forward the query to the Italian Revenue Agency. The query has to be submitted before the application of the tax provisions.
As far as the benefits are concerned, once the ruling has been signed by both parties, the Italian Revenue Agency cannot issue assessments or impose fines or penalties that would be in contrast with the opinion expressed in the advance ruling.
Estimating adjustment factors for the sales comparison approach in the presence of heterogeneous housing and thin markets
The two most recommended methods for estimating adjustment factors in the Sales Comparison Approach are Multiple Regression Analysis and Paired Data Analysis. Both methods, however, can rarely be applied to particular types of real estate markets, such as the Italian real estate market, which are characterised by heterogeneous housing and a small number of housing sales (thin markets). The proposed approach in this paper exploits the basic idea of the Analytic Hierarchy Process and aims at providing a possible alternative to the two most recommended methods in estimating adjustment factors in such markets. Indeed, the approach proves to be very useful when the number of main characteristics affecting house prices is almost equal to the number of housing sales.

Gaetano LISI
Italian Revenue Agency

Italian Revenue Agency
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