Italy’s Tax Amnesty Proves Successful

December 10, 2015 Taxation in Italy

ROME – Italy’s latest tax amnesty is paying dividends, and is expected to bring in billions in recovered taxes, penalties, and interest.

Earlier this week the tax authority of Italy announced that the recently concluded tax amnesty programme will bring in over EUR 4 billion in revenues.

The tax amnesty which was launched last year was concluded on November 30th, attracting 130 000 declarations with a value of EUR 59.5 billion over that time.

The program was intended to encourage disclosure of funds previously hidden overseas, in exchange for partial protection from prosecution and a reduction in the penalties charged for non-compliance.

The amount of unpaid taxes to be recovered from the hidden funds is expected to be approximately EUR 3.8 billion, with the owing interest and penalties raising the amount to as much as EUR 4.1 billion.

Approximately 70 percent of the funds declared during the amnesty were held in Switzerland, with the remainder spread across Monaco, the Bahamas, Luxembourg, and Singapore.

While the tax amnesty has proven to be successful, the amount recovered still pales in comparison to the amount lost each year to persistent tax evasion, which is currently estimated to amount to as much as EUR 90 billion per year.

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