Global Forum on Transparency and Exchange of Information for Tax Purposes peer reviews : Italy 2011 ; combined: phase 1 + phase 2 ; June 2011 (reflecting the legal and regulatory framework as at March 2011)

107 Pages·2011·1.28 MB·English

by  OECD

Global Forum on Transparency and Exchange of Information GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE
for Tax Purposes
OF INFORMATION FOR TAX PURPOSES
PEER REVIEWS, COMBINED: PHASE 1 + PHASE 2
ITALY
Peer Review Report
The Global Forum on Transparency and Exchange of Information for Tax Purposes is the
multilateral framework within which work in the area of tax transparency and exchange of
information is carried out by over 100 jurisdictions which participate in the work of the Global Combined: Phase 1 + Phase 2
Forum on an equal footing.
The Global Forum is charged with in-depth monitoring and peer review of the implementation
of the standards of transparency and exchange of information for tax purposes. These
standards are primarily refl ected in the 2002 OECD Model Agreement on Exchange of
Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax
Convention on Income and on Capital and its commentary as updated in 2004, which has ITALY
been incorporated in the UN Model Tax Convention.
The standards provide for international exchange on request of foreseeably relevant
information for the administration or enforcement of the domestic tax laws of a requesting
party. “Fishing expeditions” are not authorised, but all foreseeably relevant information must
be provided, including bank information and information held by fi duciaries, regardless of the
existence of a domestic tax interest or the application of a dual criminality standard.
All members of the Global Forum, as well as jurisdictions identifi ed by the Global Forum as
relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1
reviews assess the quality of a jurisdiction’s legal and regulatory framework for the exchange
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of information, while Phase 2 reviews look at the practical implementation of that framework. e
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Some Global Forum members are undergoing combined – Phase 1 plus Phase 2 – reviews. r R
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The ultimate goal is to help jurisdictions to effectively implement the international standards v
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of transparency and exchange of information for tax purposes. w
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All review reports are published once approved by the Global Forum and they thus represent p
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agreed Global Forum reports. rt C
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For more information on the work of the Global Forum on Transparency and Exchange of m
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Information for Tax Purposes, and for copies of the published review reports, please visit in
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www.oecd.org/tax/transparency. d
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Please cite this publication as: 1
+
OECD (2011), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer P
Reviews: Italy 2011: Combined: Phase 1 + Phase 2, Global Forum on Transparency and Exchange ha
s
of Information for Tax Purposes: Peer Reviews, OECD Publishing. e
2
http://dx.doi.org/10.1787/9789264115026-en IT
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ISBN 978-92-64-11501-9 -:HSTCQE=VVZUV^:
23 2011 30 1 P

Global Forum
on Transparency
and Exchange
of Information for Tax
Purposes Peer Reviews:
Italy 2011
COMBINED: PHASE 1 + PHASE 2
June 2011
(reflecting the legal and regulatory framework
as at March 2011)
This work is published on the responsibility of the Secretary-General of the OECD.
The opinions expressed and arguments employed herein do not necessarily reflect
the official views of the OECD or of the governments of its member countries or
those of the Global Forum on Transparency and Exchange of Information for Tax
Purposes.
Please cite this publication as:
OECD (2011), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer
Reviews: Italy 2011: Combined: Phase 1 + Phase 2, Global Forum on Transparency and Exchange
of Information for Tax Purposes: Peer Reviews, OECD Publishing.
http://dx.doi.org/10.1787/9789264115026-en
ISBN 978-92-64-11501-9 (print)
ISBN 978-92-64-11502-6 (PDF)
Series: Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviews
ISSN 2219-4681 (print)
ISSN 2219-469X (online)
Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.
© OECD 2011
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3
TABLE OF CONTENTS –
Table of Contents
About the Global Forum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Information and methodology used for the peer review of Italy. . . . . . . . . . . . . .11
Overview of Italy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Recent developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Compliance with the Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
A. Availability of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
A.1.Ownership and identity information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
A.2.Accounting records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
A.3.Banking information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
B. Access to Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
B.1.Competent Authority’s ability to obtain and provide information. . . . . . . . 52
B.2.Notification requirements and rights and safeguards. . . . . . . . . . . . . . . . . . 61
C. Exchanging Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
C.1.Exchange-of-information mechanisms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
C.2.Exchange-of-information mechanisms with all relevant partners. . . . . . . . 72
C.3.Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
C.4.Rights and safeguards of taxpayers and third parties. . . . . . . . . . . . . . . . . . 78
C.5.Timeliness of responses to requests for information . . . . . . . . . . . . . . . . . . 79
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – ITALY © OECD 2011
4
– TABLE OF CONTENTS
Summary of Determinations and FactorsUnderlyingRecommendations. . . . 87
Annex 1: Jurisdiction’s Response to the Review Report . . . . . . . . . . . . . . . . . . 91
Annex 2: List of all Exchange-of-Information Mechanisms inForce. . . . . . . . 92
Annex 3: List of all Laws, Regulations andOtherMaterialReceived. . . . . . . 97
Annex 4: People Interviewed During On-Site Visit . . . . . . . . . . . . . . . . . . . . . 100
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – ITALY © OECD 2011
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ABOUT THE GLOBAL FORUM –
About the Global Forum
The Global Forum on Transparency and Exchange of Information for Tax
Purposes is the multilateral framework within which work in the area of tax
transparency and exchange of information is carried out by over 100 jurisdic-
tions, which participate in the Global Forum on an equal footing.
The Global Forum is charged with in-depth monitoring and peer review of
the implementation of the international standards of transparency and exchange
of information for tax purposes.These standards are primarily reflected in the
2002 OECD Model Agreement on Exchange of Information on Tax Matters
and its commentary, and in Article26 of the OECDModel Tax Convention on
Income and on Capital and its commentary as updated in 2004.The standards
have also been incorporated into the UNModel Tax Convention.
The standards provide for international exchange on request of foresee-
ably relevant information for the administration or enforcement of the domes-
tic tax laws of a requesting party.Fishing expeditions are not authorised but
all foreseeably relevant information must be provided, including bank infor-
mation and information held by fiduciaries, regardless of the existence of a
domestic tax interest.
All members of the Global Forum, as well as jurisdictions identified by
the Global Forum as relevant to its work, are being reviewed.This process is
undertaken in two phases. Phase1 reviews assess the quality of a jurisdiction’s
legal and regulatory framework for the exchange of information, while Phase2
reviews look at the practical implementation of that framework.Some Global
Forum members are undergoing combined – Phase1 and Phase2 – reviews.
The ultimate goal is to help jurisdictions to effectively implement the interna-
tional standards of transparency and exchange of information for tax purposes.
All review reports are published once adopted by the Global Forum.
For more information on the work of the Global Forum on Transparency
and Exchange of Information for Tax Purposes, and for copies of the pub-
lished review reports, please refer to www.oecd.org/tax/transparency.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – ITALY © OECD 2011

7
EXECUTIVE SUMMARY –
Executive summary
1. This report summarises the legal and regulatory framework for
transparency and exchange of information of Italy.The international standard
which is set out in the Global Forum’s Terms of Reference to Monitor and
Review Progress Towards Transparency and Exchange of Information, is
concerned with the availability of relevant information within a jurisdiction,
the competent authority’s ability to gain timely access to that information,
and in turn, whether that information can be effectively exchanged with its
exchange of information partners.
2. Italy has a long history of developing its capacity to exchange infor-
mation for tax purposes in an effective manner. It has an extensive network
of 85 bilateral exchange of information (EOI) arrangements contained in its
DTCs and covering 91 jurisdictions. Although Italy has not signed any tax
information exchange agreements (TIEAs) to date, it has initialled eight such
agreements and is currently negotiating EOI mechanisms to the standard with
more than 40 jurisdictions.It is noted that the timeframe to bring the treaties
signed into force can in some cases take several years.It is nevertheless also
noted that the time frame to bring the recent protocols signed with Cyprus1
and Malta was about one year and Italy will continue its efforts to ensure the
ratification of its treaties expeditiously.As a member of the European Union2
1. 1. Footnote by Turkey: The information in this document with reference to
« Cyprus» relates to the southern part of the Island.There is no single authority
representing both Turkish and Greek Cypriot people on the Island.Turkey rec-
ognizes the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and
equitable solution is found within the context of the United Nations, Turkey shall
preserve its position concerning the “Cyprus issue”.
2.Footnote by all the European Union Member States of the OECD and the European
Commission: The Republic of Cyprus is recognised by all members of the United
Nations with the exception of Turkey.The information in this document relates to the
area under the effective control of the Government of the Republic of Cyprus.
2. The current EU members are: Austria, Belgium, Bulgaria, Cyprus (see footnote above),
the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – ITALY © OECD 2011
8
– EXECUTIVE SUMMARY
(EU), Italy is covered by the provisions of the EU Council Directive 77/799/
EEC of 19 December 19773 concerning mutual assistance by the competent
authorities of the Member States in the field of direct taxation and taxation
of insurance premiums. Italy is also a party to the Council of Europe and
OECD Convention on Mutual Administrative Assistance in Tax Matters4 and
a signatory of the protocol to this convention.
3. Besides exchange of information on request in the field of direct taxa-
tion, representing more than 1000 requests received over the last three years,
Italy is involved, as a member of the European value-added tax (VAT) system,
in VAT exchange of information (more than 2000 incoming requests received a
year).Italy also has strong spontaneous and automatic exchange of information
programs, under the scope of its double taxation convention (DTCs) but also the
EU framework, in particular under the EU Savings Directive 2003/48/EC.
4. The Italian tax legislation grants broad powers to revenue authori-
ties to compel the provision of information and these measures can be used
for EOI purposes in the same way as for domestic purposes. This informa-
tion can be accessed by various means; in writing (questionnaires), visits to
the premises of businesses, during tax examinations or by testimonies. As
regards EOI, the competent authority is the Dipartimento delle Finanze, one
of the Directorates of the Italian Ministry of Economy and Finance, with
two authorised representatives, the Agenzia delle Entrate and the Guardia di
Finanza.These two authorised representatives have strictly the same powers
to answer incoming requests.
5. Responses to incoming requests are furnished to requesting par-
ties within 90 days in 15% of cases. It is noted that the Italian authorities
should speed up the provision of information and implement, as a routine, the
sending of status updates of the requests. Where delays in the provision of
information have been mentioned by Italy’s partners, these partners have also
highlighted the high quality of the responses furnished by Italy’s competent
authorities. Over the last three years there were only a few instances where
Italy was not in position to provide the information requested and this was
usually due to missing elements in the requests themselves.
3. This Directive came into force on 23 December 1977 and all EU members were
required to transpose it into national legislation by 1 January 1979. It has been
amended since that time.A new Mutual Assistance Directive was adopted by the
EUCouncil on 7 December 2010 and will enter into force on 1January 2013.
4. Jurisdictions covered by the provisions of this convention are: Azerbaijan,
Belgium, Denmark, Finland, France, Iceland, Italy, the Netherlands, Norway,
Poland, Sweden, Ukraine, the United Kingdom, and the United States.In addi-
tion, Canada, Germany and Spain have signed the Convention and are awaiting
ratification.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – ITALY © OECD 2011