The Tax Amnesty 2023 Framework, as set forth by Law no. 197/2022
(so called Budget Law 2023) has introduced the opportunity
for settling formal tax breaches committed until October 31,2022.
The eligible misconducts include irregularities, infractions
and noncompliance with legal obligations or binding fulfilments of
formal nature. Furthermore, the violations under scope must
not have affected the tax base calculation for income tax
(IRES), value added tax (IVA) and regional tax on production
activities (IRAP), and the related payment.
In order to access to the formal breaches' settlement, the
applicant must:
- pay € 200.00 per each fiscal year in which the violations have been committed, by March 31, 2023 or in two equal installments by March 31, 2023 and March 31, 2024, and
- remove the irregularity or omission by March 31, 2024.
As for the eligible subjects, the Budget Law allows individuals, legal entities, withholding agents and qualified intermediaries to apply for the definition.
Here below is a brief sample list of violations eligible for the facilitated settlement:
- omitted or unfaithful communication of VAT liquidation (LIPE) - "only whether VAT has duly been paid and the violation had no effect on the related calculation and payment " ex art. 11 § 2-ter of Legislative Decree 471/97;
- late electronic transmission of income tax return through an intermediary pursuant to Art. 7-bis of Legislative Decree No. 241/97;
- omitted or unfaithful financial disclosures pursuant to Art. 10 of Legislative Decree No. 471/97;
- omitted or unfaithful submission of INTRASTAT returns (Art. 11 § 4 of Legislative Decree No. 471/97);
- violation of the accrual principle, given that the misconduct did not imply any tax payment gap (Art. 1 § 4 of Legislative Decree No. 471/97);
- formal error on invoices, not affecting the VAT liquidation (Art. 6 § 1 of Legislative Decree No. 471/97);
- omitted or incorrect invoices for out of scope, exempt or excluded from VAT transactions, given that the violation did not generate any impact in terms of corporate taxes (Art. 6 § 2 of Legislative Decree 471/97);
- missing registration to the VIES (we remind that starting from January 1, 2020, this requirement is fundamental for benefitting from the Intra-EU non-taxable regime for VAT purposes).
The Italian Revenue Agency ("IRA") provided various
clarifications through a recent Interpretation Paper, namely Note
no. 2/E/2023 released on January 27, 2023.
In particular, the IRA has clarified that the facilitated
settlement under scope shall be considered similar to the previous
version ruled by Article 9 of DL 119/2018 and thus, the same
clarifications provided at the time, shall be applicable, except
for any relevant variation in the legal framework. As a
consequence, any clarifications provided by the IRA with Ruling No.
62274 issued on March 15, 2019 and Note No. 11 issued on May 15,
2019, shall be considered applicable.
It is worth mentioning a relevant clarification: violations for
wrong application or misapplication of the reverse charge
regime - pursuant to Art. 6 § 9-bis, 9-bis.1 and 9-bis.2 of
Legislative Decree No. 471/97 - are included in the facilitated
settlement "only in case VAT is, albeit irregularly, paid;
instead, the violation shall not be considered "formal"
and thus cannot be settled under the facilitated framework under
scope, in case it has led to a VAT non-payment."
As for the exclusions, similarly to Art. 9 of DL 119/2018,
violations eligible for the "Remissione in bonis" cannot
be subject to the facilitated definition. The reason is that in
this case the violation is actually an irregularity not challenged
with a penalty imposition, but rather with the denial of the
optional or facilitated tax regime. That is, for instance, the case
of a missing disclosure to ENEA within the legal terms.
Originally published 30 March 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
