Tax Evaders - Look Out !

The Italian tax authorities have just come to an agreement with the government that Comuni will have the power to report suspected tax evaders and receive a hefty portion of any amounts that are recovered as a result.

The Comuni already have this power, but little incentive to use it as the amount recoverable is only 30%. In fact, to date, only the Comune di Genova has taken advantage. This percentage will be raised to 100% for the next three years – as an additional incentive, especially at a time when local coffers are being diminished due to central government cuts.  The tax take will subsequently fall back, from 2015 onwards, to 50%.




And how will the Comuni be able to spot situations of tax evasion?


They will be able to compare individuals’ tax returns with their ICI declarations, rent contracts, property deals and domestic utility bills.