Category Taxation in Vatican

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 authoritie...

Read More

Vatican Cracks Down on Illicit Activity

April 29, 2016 Taxation in Vatican

VaticanVATICAN – In an effort to clean up the image of the controversy-ridden Vatican bank, the city’s financial watchdog has halted millions in transfers and closed thousands of accounts over the course of 2015.

In its annual report released on April 28th, the Financial Information Authority of the Vatican revealed that over the course of 2015 it had received 54 reports of suspicious financial activities in accounts held with the Institutes of Religious Works, the bank of the Vatican.

The number of reports submitted in 2015 marks a four-fold increase compared to the previous year, when only 147 reports were filed.

However, despite the significant increase in the number of filed reports, only 17 cases were handed over to prosecutors for further investigation and action.

The reports of suspicious...

Read More

Italy and Vatican Sign Tax Agreement

July 30, 2013 Taxation in ItalyTaxation in Vatican

VaticanVATICAN – Italy and the Vatican have laid the groundwork for future cooperation in the fight against financial crimes.

In a communique on July 29th the Press Office of the Holy See revealed that the financial intelligence units of the Vatican and Italy have signed a Memorandum of Understanding regarding the sharing of information to aid the fight against tax evasion and money laundering occurring in both countries.

Explaining the significance and impact of the newly signed memorandum, the director of the Vatican’s financial intelligence unit Rene’ Bruelhart said that the Vatican is committed to stamping out the occurrence of tax evasion, and “…Italy is an especially important partner for us“ in reaching this goal.

The signing comes at the same time as both countries are taking ext...

Read More

Vatican Bank Directors Resign In Tax Scandal

July 9, 2013 Taxation in Vatican

VaticanVATICAN – The Vatican Bank has become embroiled in another money laundering scandal, after a senior employee(s) was found to be smuggling cash on behalf of clients.

Earlier last week the director of the Vatican Bank Paolo Cipriani and the deputy director of the bank Massimo Tulli resigned from their positions following allegations claiming that the institutions has been actively utilized in international money laundering schemes.

The resignations came only days following the arrest of Monsignor Nunzio Scarano, a senior accountant of the bank, who was caught trying to smuggle into Italy approximately EUR 20 million of funds belonging to a wealthy Swiss family.

The accountant was accused of attempting to bring the money into Italy in order to secretly deposit it in an account at the Vatican...

Read More

Vatican Embroiled in Money Laundering Scandals

June 15, 2012 Taxation in Vatican

Vatican Embroiled in Money Laundering ScandalsVATICAN – The Vatican has once again been linked to organized crime and money laundering, in the second bank scandal to hit the city state in less than two months.

Over the course of the week the Italian media have released fresh reports linking the Vatican with allegations of facilitating money laundering for members of organized crime rings.

According to the Italian media, six weeks ago the Italian prosecutor made an official request to the Institute for Religious Works (IOR), otherwise known as the Vatican bank, for more information regarding the bank accounts held by a priest who is suspected of using his connections to the institute to help launder money for Matteo Messina Denaro, a high ranking member of the organized crime syndicate in Sicily.

Throughout the week the IOR has acknow...

Read More