The tax authorities turn on a light on voluntary disclosure. The Revenue Agency published today the first circular which clarifies how it will be possible to make use of the new procedure for the return of illegally exported capital.
The law – we recall – establishes that the tax evader will have to pay all unpaid taxes but will have discounts on penalties and interest, will not incur the penalties envisaged for tax crimes committed and above all will not be prosecuted for the new crime of self-laundering, which is been introduced in the provision precisely with the aim of giving a boost to emergence. Payment by the author of the violations must be made in a single solution or in three monthly installments and the procedure can be activated by 30 September 2015 for violations committed up to 30 September last.
Here are the main changes that emerged from the circular:
WHO CAN ACTIVATE THE VOLUNTARY DISCLOSURE…
The procedure is intended for natural persons, non-commercial entities, simple companies and tax-equivalent associations residing in Italy in at least one of the tax periods for which the voluntary disclosure can be activated. Also included are "fictitious foreign residents", citizens "transferred" to black-listed countries, "foreign-appointed" subjects, trusts (including "foreign-appointed" trusts), taxpayers who hold assets abroad without being formally holders of them.
…AND WHO CAN'T
Access to the voluntary disclosure is not permitted to anyone who has had formal knowledge:
a) the start of accesses, inspections or checks;
b) the start of other administrative verification activities;
c) of his/her status as suspect or defendant in criminal proceedings for violation of tax laws.
The Tax Authority also clarifies that "the procedure cannot be activated even in the event that a third party, who is jointly and severally liable in tax matters with the applicant or who has participated in a tax crime attributed to him, becomes aware of the causes of inadmissibility ”. Furthermore, "in the presence of preliminary inspection activities involving only one year - continues the Agency -, it is possible to activate the procedure for the years not involved in the check".
THE NATIONAL VOLUNTARY DISCLOSURE
The national procedure “also has access to taxpayers who are not bound by the declaratory obligations regarding tax monitoring – writes the Agency – and those bound by this obligation who have fulfilled it correctly. All these subjects, therefore, will be able to regularize all the declaratory violations relating to income taxes and related surtaxes, substitute taxes, IRAP, VAT, as well as violations regarding the declarations of withholding agents. The national voluntary collaboration procedure can be started in relation to all the tax periods for which, at the date of submission of the request, the terms for the assessment have not expired”.
THE ACCOMPANYING REPORT
Within thirty days following the submission of the application, but in any case no later than 30 September 2015, taxpayers must also send the tax authorities an accompanying report which includes various information:
– the amount of investments and assets of a financial nature set up or held abroad, even indirectly or through nominees;
– the determination of the income that was used to establish or purchase them, as well as the income that derives from their disposal or use for any reason;
– the determination of any higher taxable income for the purposes of income taxes and related surtaxes, substitute taxes, regional tax on production activities, social security contributions, value added tax and withholding taxes even if not connected with the activities established or held abroad.
The report, which the taxpayer can supplement in the adversarial phase, must be sent to the certified email address indicated in the communication with which the Agency confirmed receipt of the request. The entire procedure must be carried out electronically.
REDUCED SANCTIONS FOR UNKNOWING OVERLIGHTS
The tax authorities provide a fine discount for so-called unconscious oversights. "The completion of the voluntary collaboration procedure does not preclude the further exercise of the ascertaining action - writes the Agency again - therefore, in the event that after completion, in relation to the years covered by the same procedure, the Office detects further higher taxable amounts not highlighted by the taxpayer at that time, will proceed" to a "partial assessment" and "will have to graduate the sanctioning response also according to the seriousness of the taxpayer's conduct and the latter's failure to comply with the collaborative spirit underlying the procedure of voluntary collaboration concluded".
At the end of the procedure, "in the event of non-payment of even just one of the installments - concludes the tax authorities -, the voluntary disclosure is not completed and the Offices will send the taxpayer a new assessment notice and a new notice of dispute".
