Vatican Cleaning Up Tax Affairs of Account Holders

October 20, 2016 Taxation in ItalyTaxation in Vatican

Taxes for Vatican bank accountsVATICAN – Italian taxpayers with bank accounts in the Vatican now have less than 180 days to settle their tax affairs and declare their incomes to the Italian government.

Earlier this week the Vatican released a statement explaining the procedures which will soon need to be followed by Italian taxpayers with bank accounts with the Institute for the Works of Religion, often simply called the Vatican bank.

The Vatican clarified that as of October 15th a new agreement had come into effect between the city-state and Italy, in an effort to increase fiscal transparency and the potential for tax evasion through the infamous Vatican bank.

Italian taxpayers with accounts at the Vatican bank, were told that they have 180 days from the implementation of the new tax agreement to inform tax authorities in Italy of the incomes earned and held in their Vatican accounts.

The Vatican and the Institute for the Works of Religion has often been the subject of controversy with ongoing claims that the institute has been used as a means of facilitating tax evasion and money laundering.

In recent years Pope Francis has taken a strong stance against the allegations that the Institute facilitates illicit financial activity, and has taken several measures aimed at cleaning up the financial image of the city-state and its bank.