strongly putting pressure on individuals and companies that hold financial businesses and properties undeclared to their own countries. In October 2014, at the Organisation for Economic Co-operation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax purposes in Berlin, 51 countries signed for the adoption of a new global standard that will allow an automatic exchange of information about taxpayers' positions starting in 2017. This initiative is focused on the fight against tax havens, granting at the same time the possibility of recovering resources held abroad, thus not available for internal and legal investments. This aim is a main interest of Italy, since it is estimated that businesses in the amount of 150 billion euros are currently illegally held abroad by Italian taxpayers. Italy, with this aim and on the basis of the legislative experience of other United Kingdom, Germany and France), approved a Voluntary Disclosure procedure in December 2014. As per other countries' similar laws, the Italian Voluntary Disclosure procedure will not allow any reduction on unpaid taxes, but will grant reduced administrative penalties and the exclusion from a quite extensive list of criminal liabilities. The Voluntary Disclosure will apply to undeclared financial activities and properties up to September 2014. Together with the Voluntary Disclosure procedure and in order to increase its attractiveness, Italy is entering international agreements with main tax havens in order to grant a full exchange of tax and financial information with regard to the businesses held by Italian taxpayers in such tax havens. Furthermore, Italy has introduced the new crime of self-laundering. Pursuant to this new crime, individuals who use money or goods originating from an illegal activity that they contributed to punishable with a fine and from two to eight years of imprisonment. Voluntary Disclosure is possible for individuals, entities, partnerships and corporations, with tax residence in Italy. It is therefore available also for foreign corporations with a subsidiary or a branch in Italy in order to legalize the position of the Italian entity with regard to businesses illegally held abroad, but most of all, in order to free the managers (possibly foreigners) of criminal liability. In addition, according to the draft form prepared by the Italian Tax Authority, it seems that Voluntary Disclosure will also apply to undeclared businesses held in Italy and not only abroad. It is mandatory that the taxpayer (or any jointly liable person) is not aware of any tax audit pending with regard to the assets subject to disclosure. Moreover the procedure can be implemented only once for each taxpayer. The taxpayer will have to submit to the Italian Tax Authority all the experience in tax law, with a strong focus on tax litigation and cross-border tax issues. He has successfully assisted many Italian and international groups and corporations in their tax litigation and restructuring issues. practicing as a qualified chartered accountant, he mainly advised industrial and financial companies on corporate and tax matters. He actively dealt with purchase and transfer of shares, direct and indirect mergers, transfers and divisions of going concerns. He performed appraisals for several industrial and financial companies. Piazza Borromeo Milan, Italy 12-20123 +39 02 805 2565 Fax m.salvatore@deluca1974.it deluca1974.it |