Italy Turns High-Tech to Fight Evasion
August 21, 2013 Taxation in Italy
ROME – Italy has extended its arsenal of tools to combat tax evasion, with a new system to automatically red-flag taxpayers who are likely to be tax dodgers.
On August 19th the Italian Revenue Agency launched a new computer system to automatically check information about the incomes and expenses of taxpayers in order to uncover evidence tax evasion and tax dodging.
The system, officially called Redditometro, will cross-check 80 pieces of information about each taxpayer across 128 separate databases, automatically triggering a warning and calling for an investigation to be conducted if the declared incomes and recorded outgoings of a taxpayer are found to differ by mor than 20 percent.
As a first task the system will be used to look over a samples of records of 35 000 households over the last four years, and the scope of the checks will be expanded once this task is complete.
The deputy director of the Italian Revenue Agency Marco Di Capua has noted that the new system is extremely versatile and may detect tax evasion on a wide range of scales, from the ultra-wealthy hiding away millions of Euros, to average households manipulating their financial affairs to become “fake poor”.
The Marco Di Capua added that for the foreseeable future the system will be configured to specifically search for discrepancies resulting in underpayment of taxes of at least EUR 12 000, with smaller amounts not yet being flagged.
Photo by R.I.Pienaar