More time for Italian voluntary disclosure applicants

The deadline for participation in Italy’s current voluntary disclosure program has been extended from September 30 to November 30, 2015, following the decision taken at a Cabinet meeting on September 28, reports Tax News.

In addition, those individuals who file an application form to enter the program by the new final date will then be allowed until December 30 to present all of the necessary backing documents to the Revenue Agency. Applicants who have already applied will also be given until December 30 for the completion of their documentation.

The press release following the Cabinet meeting stated that the extension has been agreed due to the high number of pending applications, and the need for applicants to have more time to complete the program’s requirements. In particular, applicants have experienced delays in gathering the required documentation when involving foreign jurisdictions.

Under the program, participants have to pay all outstanding taxes when regularizing their undeclared capital held abroad, and are then subject to much-reduced administrative and criminal penalties.

The number of participants had already been expected to grow substantially as the original deadline neared, particularly following the recent approval of legislation to ratify amendments to Italy’s tax agreements with Switzerland, Liechtenstein, and Monaco, to provide for the exchange of tax information in line with international standards.

The Cabinet also decided to use part of the program’s new funds to avoid activation of a “safeguard clause” within the 2015 Budget.

The Government decision has avoided an increase to the excise duty on fuels that would have gone into effect on September 30, to cover the decrease in budgetary revenue following the European Commission’s rejection of a value-added tax reverse charge to be applied to large retailers in Italy.