Eliminate the balance and down payment system on VAT and Irpef, avoiding the formation of tax credits and therefore waiting for refunds. This is the proposal launched by Ernesto Maria Ruffini, director ofInland Revenue, in an interview with Corriere della Sera.
What the tax number one puts on the table is a radical simplification of obligations for self-employed workers, professionals and VAT numbers: in essence, it would be a matter of passing from a model based on expected receipts to one based on actual receipts.
The idea seems to have been welcomed by the Government and therefore could become one of the pillars of the tax reform repeatedly announced.
Ruffini explains to the Milanese newspaper that the idea is to introduce “a monthly or quarterly periodic settlement system of income taxes based on actual receipts and expenses.
In this way we could overcome "the current system of advances and balances - continues the director of the Revenue Agency - which generates the anxiety of having to get a supply to pay taxes in advance compared to a year that we still don't know how it will go and then for the balance, perhaps going into credit with the consequent expectation of repayment".
Ruffini assures that the tax authorities would take "a few months" to implement a reform of this type. At the same time, though, he speculates a multi-step application: initially, "only minor companies in simplified accounting could be involved (up to 400 thousand euros in revenues from services or 700 thousand euros from goods) and flat-rate taxpayers (VAT numbers up to 65 thousand euros in revenues), in all about 3 millions of people". After that, the project could be extended to "self-employed, professionals and partnerships in ordinary accounting, another million or so".
The Revenue Agency could also withdraw the sums due from the taxpayers' current accounts, "on a voluntary basis and subject to adjustments - concludes Ruffini - Otherwise it could be the same taxpayer to order the payment of the amount due every month or every three. This simplification would also lead to the extension of the pre-compiled personal income tax return for these taxpayers”.
