Italy Looks To Vatican For Next Tax Deal
After recently completing tax information exchange agreements (TIEAs) with Switzerland, Liechtenstein, and Monaco, the Italian Government is now looking to agree a similar treaty with the Holy See in Rome’s Vatican City.
The TIEAs between Italy and Switzerland, Liechtenstein, and Monaco, and the prospective treaty with the Vatican, all provide for the automatic exchange of tax information on request based on the latest model agreement from the Organisation for Economic Co-operation and Development.
However, as the Vatican is not on the Italian “black list” of countries, as was the case with Switzerland, Liechtenstein, and Monaco, the signing of a TIEA is not a prerequisite for Italians with undeclared assets in the Vatican’s bank, the Istituto per le Opere di Religione (IOR), to enter into Italy’s current voluntary disclosure program.
Although unquantifiable, it can be expected that, after completion of the agreement, various non-Catholic Church account holders will move away from the IOR. In an interview, Italian Premier Matteo Renzi said that he hopes “to recover further tax revenue” following its signing.
The Vatican’s press office confirmed that “negotiations are in progress to collaborate fully with Italy and achieve the goal of the widest and most transparent exchange of tax information.” It is expected that the TIEA could be signed by the end of this month.
