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Increase Of Penalties For Regularisation Of Tax Infringements

Italy

Recent changes in Italian law have increased the penalties due in the event of regularisation of late tax payments and late tax returns, which are made before an assessment by the tax authorities. Taxand Italy examines each of the penalties which now apply.

They are as follows:

  • 3% (instead of 2.5%) penalty for regularisation of late payments within 30 days from the deadline
  • 3.75% (instead of 3%) penalty for regularisation of late payments within the deadline to file the tax return regarding the year in which the violation occurred or within one year from the lower payment
  • 1/12 (instead of 1/10) of the minimum penalty applicable in case of late filing of tax returns (but occurred within 90 days from the ordinary deadline)

Penalties due in the event of agreement with tax authorities on a tax assessment have been increased as follows

  • 1/6 (instead of 1/8) of the penalty due on higher assessed taxes in case of settlement made on preliminary tax report ("P.V.C.")
  • 1/3 (instead of 1/4) of the penalty due on higher assessed taxes for acceptance of the tax assessment or also after negotiation and agreement with Tax Authority
  • 1/3 (instead of 1/4) of the penalty due on higher assessed taxes in the event of payment of only the penalties before the litigation
  • 40% (instead of 1/3) of the penalty due on higher assessed taxes in case of settlement during the first instance judicial proceeding before Tax Courts.

Taxand's Take


The above changes will impact on decisions made by assessed companies regarding valuation of the most convenient strategies and proposed solutions between an agreement with a Tax Authority or the litigation procedure.

Your Taxand contacts for further queries are:
Guido Arie Petraroli
T. +39 02 7260591
E. gpetraroli@fantozzieassociati.it

Cristina Periti
T. +39 02 7260591
E. cperiti@fantozzieassociati.it

Taxand's Take Author