Italy signs landmark share of information agreement with Switzerland

The 23rd February 2015 will go down as a landmark moment for relations between Italy and Switzerland.  Typically a place for Italians to hide money from the tax man, a historic agreement between the 2 countires now means that Switzerland will share tax information with the Italian authorities on Italian resident individuals. 

It is estimated that tax evasion costs the Italian Government 90 billions euros a year and Switzerland has typically been where Italian's have preferred to keep money held overseas. 

However, Italian residents will get one last repreive through the 'Voluntary Disclosure' procedure which reduces fine and penalties but with the caveat that the previously un-disclosed assets must be reported by the 30th September 2015. 

If the Italian authorities calculations are correct then they estimate that 70% of the money that Italians hold abroad is kept in Switzerland and under this new share of information agreement it could yield as much as 6 billion euros per annum in tax revenues.  Whether they will use that money to good effect is anyone's guess. 

Of course, this is a landmark move for Italy but is part of a wider move for Switzerland to signs multilateral share of information agreements across Europe and the rest of world to ensure that money can no longer be held there anonymously and taxes be evaded. 

If you have money in Switzerland or other offshore territories and are concerned about your fiscal position in Italy under new share of information agreements  then you can contact me on gareth.horsfall@spectrum-ifa.com, or on 3336492356 for a free, no obligation meeting.