The Fiscal Shield may
return. It sounds like something from the new Avengers movie series.
In reality it is an idea
being proposed by the new Italian Government to repatriate even more funds from
citizens and residents alike who are holding funds outside the country. This
time the Scudo is targeting foreign held banks accounts which, to date,
have been undeclared or still fall outside the International share of
information agreements, safety deposit boxes and listed shares. The
Italian authorities estimate that there is still €220 billion undeclared and
held offshore.
The scudo fiscale is not something new to Italy, but seemed to have been
pushed to the side by the better earner (for the state), Voluntary
Disclosure.
For anyone unfamiliar with the Scudo Fiscale, it is an approach used
whereby a fiscal 'porthole' is opened for a limited time during which there is
the possibility of repatriating capital into Italy at a one-off rate of tax and
without penalties, sanctions or fines.
The Lega and 5Stelle are proposing a flat tax of either 15 and 20% on
repatriated monies, keeping the rate of tax in line with the newly proposed
flat tax rates on income, to be phased in from January 2019, starting with
partita IVA and business.
The revenue raised from the Scudo would be used to fund the
proposed 'reddito cittadinanza' which 5Stelle had as part of their
election manifesto.
We should learn more details when the hotly disputed budget is announced
by Minister Tria sometime soon.
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