Return of capital, Italy aligns itself with the most practiced international rules. The new law on Voluntary disclosure definitively approved yesterday by the Senate, or on the voluntary disclosure of capital clandestinely exported abroad "is not an amnesty", Economy Minister Pier Carlo Padoan hastened to clarify. But how much will it cost, then, to repatriate the sums and goods that have been exported and not declared in Switzerland, Luxembourg or other countries where the legislation is more generous than in Italy?
La expenditure to regulate one's position varies according to the duration of the export of capital or goods in foreign territory and also according to the title on the basis of which the capital is owned: self-employment, inheritance, enterprise. The new law can be applied to regularize violations that occurred by 30 September 2014 and the procedure can be activated until September 2015. For the crimes of fraudulent or untrue declaration or omitted declaration and for omitted payment of certified withholding taxes and VAT, the criminal liability excluded. In addition, a reduction in administrative tax penalties has been envisaged, while there are no discounts on the sums due as tax.
The new self-laundering crime, inserted in the Italian penal code, provides for a double track: more severe sentences if linked to a predicate offense punishable with sentences over five years and less severe sentences below this threshold.
The new offence, reads the text of the law that has just been approved, provides for the application of “the penalty of imprisonment from two to eight years and fine from 5.000 to 25.000 euros to anyone who, having committed or contributed to the commission of an intentional crime, uses, replaces, transfers money, goods or other benefits deriving from the commission of this crime in economic, financial, entrepreneurial or speculative activities, in such a way as to concretely hinder the identification of their criminal origin". Instead, it is punished with the prison from one to four years and fine from 2.500 to 12.500 euros for self-laundering linked to a predicate offense for which imprisonment of less than a maximum of 5 years is envisaged.
Self-laundering will not be punished "when the money, goods or other utilities are intended for personal use or enjoyment" provided that, the text specifies, there has not been the intention in this way to conceal the fruits of the crime.
What then happens to an Italian taxpayer who has transferred to Luxembourg or Switzerland, without declaring it, one million euros deriving from self-employment activities carried out in our country and who has decided to adhere to the voluntary disclosure? In this case, as Corriere della Sera explained based on calculations made by the Bonelli Erede Pappalardo law firm, two situations must be distinguished.
Assuming an "old" export, to repatriate 1 million euros, you can spend from 175.000 up to even 824.000. In fact, if we are dealing with income from self-employment, transferred to Switzerland for example in 2003, assuming a return on capital of 3% per annum, the voluntary disclosure costs around 13% for a cost of just over 45 thousand euros which add more than 129 euros in fines. The regulation also provides for the possibility of opting for the flat-rate calculation of the return on capital. Assuming one of 3%, the cost of voluntary regularization rises to around 22%: the levy is over 145 euros and the penalties are almost 152 euros. If, on the other hand, the income is recent and transferred to Switzerland, for example, in 2010, the cost rises: always assuming a 3% annual return, the cost rises to around 75%: over 646 thousand euros in taxes and over 178 thousand euros of fines. For an inheritance of the same amount, between 100 and 716 thousand euros can be paid when dealing with inherited assets, as tax debts are passed on to the heirs but the penalties are not, while those for violation of tax monitoring obligations remain.
"It's really #lavoltabuona" commented Prime Minister Matteo Renzi via Twitter. "This is a long-awaited and balanced measure, which concluded the parliamentary process thanks to the collaboration of the majority groups and the constructive attitude of the oppositions," said Minister Padoan in a statement released by the Ministry of Economy. “The intervention is innovative” he adds “because, compared to the previous measures for the return of capital, it is not an amnesty, as the tax due is paid in full. Those who join will have a reduction in administrative and criminal penalties". Furthermore, underlines Padoan "this law on the return of capital complies with international excellence in terms of regularization of income from capital illegally exported abroad, based on transparency, the automatic exchange of information and the end of banking secrecy, which have been adopted on the initiative of the OECD, the G20 and Ecofin under the Italian presidency of the EU”.
