Italy Expects Revenue From San Marino Compliance
The Italian Minister of the Economy and Finance, Pier Carlo Padoan, has confirmed that he expects additional tax revenue from Italian citizens with undeclared investments in San Marino from the Italian voluntary disclosure program.
In a television interview in San Marino, he noted that Italy had definitively removed San Marino from the “black list” of countries Italy considers to be tax havens in February last year, following the ratification of the double taxation agreement (DTA) between the two countries.
Apart from its provisions for reduced withholding taxes on dividends, royalties, and interest, the factor that had meant, above all, that Italy could make a positive ruling on San Marino’s standing was that the DTA contains the most recent internationally agreed framework for the exchange of tax information, to remove bank secrecy.
During his interview, Padoan noted that relations between the two countries are still undergoing a “period of transition” and the authorities of both jurisdictions “are still collaborating closely.”
At the same time, he indicated that Italian investors with undeclared assets in San Marino are expected to now regularize their tax position through the Italian voluntary disclosure program.
Under that program, voluntary disclosure of undeclared assets needs to be made by September 30, 2015. Participants have to pay all back taxes in either a single amount or in three monthly installments, but administrative and criminal penalties are greatly reduced. Persons will also be free from criminal prosecution.
