Attention must be given to a new tax rule in Italy. A specific request has been made to the Italian municipality who are required to provide to the Italian Tax Authorities the names of all Italians who enrolled on the list of citizen resident abroad (“AIRE”), from 2010 inclusive.
In practical terms, this means that all Italians who moved their Tax residence abroad will be scrutinized in order to check if their tax move is fully compliant and from which tax period took effect. Attention must be given to tax compliance of Italians who moved away in the tax years after 2010 inclusive. This is because the Italian TAX rules require tax compliance to be backdated for 10 years!
The new measure is of particular relevance to:
- Clients. It is important that a tax assessment is made before the Tax Authority. Should we find issues new Italian provisions, including the voluntary disclosure program, a solution could be activated with a significant reduction of the tax burden and the clearing of tax crimes and money laundering crimes.
- Banks. Not only for the reputation risk, but financial intermediaries are under obliged to have fully tax compliant consumers in order not to be associated with tax and money laundering crimes.
- Foreign professionals and service providers. A specific crime is related to the association with evasion and money laundering and therefore an assessment of tax risk is healthy for the client and also for the service providers.
The Italian initiative is backed by increasing tax cooperation, related to CRS and FATCA. The Italian network of tax Treaties has been strongly widened (including Jersey, Guernsey, Panama, Cayman and many other worldwide tax havens).
A new facility for Voluntary Disclosure in Italy has been introduced since October, 2016. You can find more information in our B&P Focus Magazine. Just browse our website, where you can also find information in relation to the new tax package to attract HNWI and top professionals.
The opportunity for a tax assessment, to be implemented according to local rules under full privacy and compliance, could make way for a re-organization of wealth planning structuring.
Our Firm is ready to assist with these issues from our offices in Italy, UK, Singapore and (from 2017) Switzerland.
