More on RW fines
A quick update on the position regarding the excessive penalties imposed for failure to complete the RW section of the Italian tax return - the part of the return which refers to property and financial assets held abroad. This is one of the many areas (over 20!) where the EU was threatening the Italian State with sanctions for breach of EU law. Late last year urgent draft law was put forward proposing various modifications - including to the system of RW penalties - but for some reason the RW modifications did not make it through to the final version. We will have to wait and see if they will reappear after the election. We shall keep you informed.
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| Last Updated on Thursday, 07 February 2013 21:14 |
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Red Alert for English ex-pats
Judging from our inbox, the Guardia di Finanza appears to be currently working on information received from the HMRC. If you are resident in Italy and declaring rental income from a UK/EU property in the UK ONLY, you are not complying with Italian law and you risk extremely punitive fines. Please take advice from a reliable commercialista - we would modestly suggest ourselves.
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| Last Updated on Wednesday, 16 January 2013 10:00 |
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Invoice innovation
Attention all those issuing invoices in Italy - an up-date on one of Monti's latest innovations. Despite the difficulties the country finds itself in, the Italian Government has found nothing better to do than to decide that everyone needs to number their invoices in the same way. Namely, each January you need to start from number 1 and always show the year of reference. Which makes the most sensible numbering 1/2013, 2/2013 etc. Please ensure that you do this - there will doubtless be a fine for those daring to use more imaginative methods.
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| Last Updated on Thursday, 10 January 2013 15:36 |
Here comes the cavalry.....
An update on the tortured question of the RW section. This is the part of the Italian tax return where the taxpayer has to declare any assets held overseas. The RW section is notorious for the huge penalties applied for failure to declare, which can run from 10% to 50% (and more!) of the value of the assets not declared. As we have mentioned before, the EU was looking closely at this legislation and it seems that the pressure is beginning to tell. The Agenzia is currently reviewing the provision and indications suggest that they are considering two main options: either to issue a new law reducing the penalties to something more reasonable, or to allow taxpayers to remedy past failures to give notice with the payment of a fixed penalty of euro 258. Either option would be a huge relief to very many Italian tax-residents who unwittingly have not complied with this obligation in the past. The only question remains - how long will we have to wait before they introduce the changes?
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| Last Updated on Wednesday, 21 November 2012 12:01 |
NEWS FLASH!!! A re-think on the taxes on overseas assets
A (small) victory for fairness. We mentioned previously that various elements of recent Italian legislation were under threat of examination by the EU. Well, it looks like we have a result. The two new taxes on overseas assets - IVIE, the tax on overseas property, and IVAFE, the tax on overseas assets - were introduced at the beginning of the year with immediate retrospective effect for 2011. And it appears that the EU has put pressure on the Italian government to retract this element of retrospectivity. For now it is still just a proposal, but it looks likely that the Italian Revenue will be forced to withdraw these taxes as regards 2011, and make the first year of application 2012. So all those who paid the taxes this year will effectively carry that payment forward as a tax credit, and should have one less item on their tax bill next year. Good news! |
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