Tax, agreement with tax evaders: how it works, advantages and risks of failure | Melina Gabanelli

Tax, agreement with tax evaders: how it works, advantages and risks of failure |  Melina Gabanelli

Agreement with tax evaders in Italy where the data verified by the Ministry of Finance is impressive: 41.45 billion evaded self-employment or business income of 4.1 million taxpayers. They are divided as follows: There are approximately 3 million self-employed people (of which 1.7 are in the 15% flat tax regime) and 453,429 partnerships that generally evade 69.2% of Irpef’s income for $32.4 billion, and other 674,551 joint-stock companies that evade Escaped 23.8% of Eris for 8.98 billion. The Meloni government believes that the cause of tax evasion is an overly unfriendly tax system and therefore in the tax devolution law (n. 111 of August 9, 2023, art. 17 paragraph 1, letter g, nominal. 2 here) Proposes a preventive agreement for the next two years, extendable for another two years. Let’s see what it is and how it works.

Revenue Authority proposal

The Revenue Agency provides each taxpayer with a turnover of less than 5 million euros with a valid proposal for taxation in 2024 and 2025 with an estimate of taxable income.. The calculation is made on the basis of information in the tax register database and in ISA forms that serve as a kind of report card (with a rating from 1 to 10) on the level of financial reliability of each individual. The taxpayer faces the Revenue Agency in a simplified interrogation and, if accepted, pays taxes for two years based on the proposal presented to him.

Example: The offer from the Revenue Agency to my partnership sets a taxable income of €75k for 2024 and 2025 instead of the normally declared €52k. If in 2024 my company generates a taxable income of 100k and in 2025 of 120k, my taxes and contributions will always be calculated on the basis of 75k euros. The agreement requires that everything I earn be declared, and if I make a mistake, or in any case declare less, I lose the benefit of the agreement only if the hidden earnings do not exceed 30% of those declared.


For the taxpayer or company evading taxes thereSo, There are two advantages above all: 1) Pay less than you shouldAlso because the data and information that the tax authorities will use to calculate the taxable amount is unlikely to be complete; 2) Not be subject to investigations conducted by the Revenue Agency in the following two years (Unless conditions are met). Controls, if they exist, will focus on those who do not adhere to the agreement. In short: The tax man doesn’t ask me about everything, gives me some margin for error, and therefore doesn’t control me. However, there will be no discount on the application of VAT which will be paid according to the normal rules. But practically what do you have to do to join?

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Membership requirements include having no pending matters with the tax authorities (…) and qualifying as a financially reliable entity, i.e. having an Isa score of at least 8 (…)


The way is also open to 1.7 million self-employed people with income up to 85,000 euros who pay the flat tax of 15%., for which the Revenue Agency will recalculate the taxable amount slightly: those who join will still be able to maintain the flat rate system. Membership requirements include having no debts to the tax authorities (or not exceeding €5,000) and qualifying as a financially reliable entity, i.e. with an Isa score of at least 8 (As required by the legislative decree approved by the Council of Ministers on November 3, here is the press release issued by the Council of Ministers). Of the 4.1 million taxpayers, just over 1.1 million currently have their tax report in place, 28% of the total. This percentage rises to 47% if we exclude the 1.7 million flat-rate taxpayers who are committed to the flat tax, because they do not have a tax code, and therefore it is not possible to know whether they are financially trustworthy or not.

It may be suitable for those (…) whose accounts are not in order (…) and by joining they take home the guarantee of suspension of checks for two years.

Who has a reliable tax report?

the professor. Marco Leonardi from the University of Milan and Professor. Leonzio Rizzo of the University of Ferrara broke down the data. Let’s take the category of medium and large traders as an example. Those that can be considered more reliable (ISA above 8) are 43%He declared on average a turnover of 575,690 euros and a total taxable income of 61 thousand. Why do they join by paying more, because they fall into the category of those who are supposedly well off, and are not targeted by the controls? It can be suitable for those who do not actually have regulated accounts, but just fooled the algorithm, and by joining they get the guarantee of a suspension of investigations for two years.

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(…) It would have been better (…) for the Revenue Agency to make a proposal to those who are not so reliable, (…) and then propose an agreement that is calibrated on taxable income identically in all respects to that of the taxpayer Which is above 8.

Who has an unreliable tax report

However, they cannot be relied upon, 57% of medium and large traders (Isa less than 8 years old): The average declared turnover is 434 thousand euros and the total taxable income is 19,150 euros. How does the government intend to recover money from this potential escape? Meloni & C. hopes that they will automatically declare more for the eighth grade and thus be able to join the protective agreement with its advantages. A difficult bet to win because it is entirely linked to the spontaneous behavior of tax evaders, in exchange for lower costs associated with the taxpayer’s management of control activities in the financial administration, and thus, with reduced opportunities for conflict and resulting disagreement. The evidence that recovery in this way is nothing more than an illusion, a kind of evasion of the estimates made by the government itself: from the forecasts, it seems that only 605 million euros will be recovered from those who declare a slightly larger amount for the loan. Vote 8. According to Professor Leonardi and Professor Rizzo, it would have been more reasonable to expect that the Revenue Agency would make a proposal to those who were unreliable, and would actually push them out, and then propose a calibration agreement on taxable income that was similar in all respects. To a taxpayer who is above 8.


To give another example: 51% of professionals from medium and large companies have an Isa greater than 8, average sales of €171,550 and income of €105,940; While 49% of people under 8 declared an average turnover of €170,000 and a total taxable income of €64,000. In order for this measure to have a greater chance of success in terms of recovering tax evasion, in this case also the advantage would be for the state to submit a proposal to the latter.

In any case, an agreement with tax evaders can only succeed if there is a real threat of controls if the protective agreement is rejected.

Anyone who does not abide by the agreement

In any case, an agreement with tax evaders can only succeed if there is a real threat of controls if the protective agreement is rejected. This means that anyone who does not accept the Revenue Agency’s proposal will be subject to relentless and timely checks. Paragraph 2 of Article 34 of the Legislative Decree states: The Revenue Agency and the Financial Police plan to use greater operational capacity to intensify surveillance activities against persons who do not comply with the biennial preventive agreement. To do more tests, you need more staffIt remains to be seen how this purpose will be implemented in practice given the chronic shortage of resources.

There is nothing new in this ruling: it is quite similar to the one implemented by Minister Giulio Tremonti in 2003.

the previous

There is nothing new in this condition: it is exactly like the one implemented by Minister Giulio Tremonti in 2003. It was aimed at 3 million taxpayers: 250 thousand registered and in two years the state collected 57.5 million against approximately 3.58 billion. In this case, the overall estimates are much lower: in the technical report, a figure of €760.5 million was indicated. With an addendum that says it all: Despite the above quantitative measurements, positive revenue effects are not attributed to this provision as a precautionary measure. Translated: It is a small amount of money and it is not a given that you will be able to collect it.

November 13, 2023 | 06:44

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