Italian Authorities Chase EUR 60 Billion of Taxes

January 24, 2012 Taxation in Italy

Guardia di FinanzaROME – In 2011 tax authorities in Italy launched investigations on suspected cases of tax evasion worth more than EUR 58 billion.

On January 23rd the Guardia di Finanza (GDF), the Italian law enforcement agency dealing with financial crimes, released a statement revealing that in 2011 it launched 12 000 investigations on businesses and individuals suspected of evading their tax obligations.

According to the statement, undeclared and under reported incomes were the most common forms of tax evasion, with nearly EUR 50 billion of the neglected tax obligations being evaded by taxpayers sidestepping their individual income tax liabilities. The GDF is also conducting investigations on businesses suspected of evading payments of Value Added Tax (VAT) totaling EUR 8 billion.

In 2010 Italian tax authorities managed to recoup approximately EUR 11 billion of previously unpaid tax obligations taxes.

The cases of tax evasion currently being investigated by the Italian authorities make up less than half of the overall tax obligations evaded by tax payers annually, which, according independent estimates, could be as high as EUR 120 billion.

The Prime Minister of Italy Mario Monti has repeated that the government will increase its efforts to fight tax evasion in Italy throughout 2012, as the country struggles to control its budget deficit. In 2012 Italian tax authorities are expected to conduct a greater number of raids to catch out shop owners not recording sales, or taxpayers leading luxury lifestyles while declaring low incomes.

Photo by ChodHound