TAX NEWS - June 2010

Italian Tax: Italian Tax Amnesty Declarations Top EUR100bn

Italian Ministry of the Economy has announced that previously undeclared assets repatriated or regularized from abroad by Italian residents during the whole period of the latest Italian tax amnesty totalled EUR104.5bn (USD125.25bn).

The original expiry date of the tax amnesty was December 15, 2009, but that was extended from the end of that month to April 30 this year. The penalties imposed on Italian individuals who repatriated or regularized undeclared funds during the amnesty were increased from 5% in its initial period to 6% for funds declared between January 1 and end-February 2010, and 7% for declarations from March 1 to April 30, 2010.

It has now been disclosed that total assets declared during the four-month period of the amnesty's extension was only a further EUR9.2bn, earning total penalties of almost EUR700m for the government. Together with the EUR95bn assets declared during the amnesty's original period, the total declared funds of EUR104.5bn have meant that penalties paid to the government reached a total of EUR5.6bn.

It was further disclosed that, out of the total volume of funds declared under the tax amnesty, 98% were repatriated into Italy. That meant that only 2% were regularized, with the assets remaining outside of the country.