Italy has put into effect law number 186/2014 which deals with the Voluntary Disclosure of assets abroad with the possibility of reduced fines. The law follows the normative of FATCA and it will elevate the risk of verification of information exchanged between Italy and the United States.
It is a very complex procedure, whose term will expire September 30th, 2015. The people that it will effect are individuals who have financial assets in the United States, might it be through corporations or real estate, and have not disclosed their assets according to the RW model. The amount due will be determined by the length of time that the assets have been established, if assets were established more than five years ago and never declared, the cost of the Voluntary Disclosure is between 10% and 20% of the investment.
HOW IT WORKS
The taxpayer has to turn over to its accountant all documentation relevant to the purchase and management of the activity abroad. From such documentation, the accountant has to determine the appropriate tax levy’s and reduced sanctions that can be imposed. At which point, the documentation is turned over to the Italian Internal Revenue Service that determines whether to accept the application, if so, the procedure is finalized.
JURIDICAL REPATRIATION VIA TRUSTEE
It is possible to regulate the activities held abroad via the use of an Italian corporation as a trustee by allowing the corporation to maintain the ownership and omitting such information from one’s personal tax returns. This technique, has shown a positive outcome on an individual’s privacy and on the future management of the regulated assets.
WARNINGS
Only well informed and prepared professionals can correctly file and apply for Voluntary Disclosure. Individuals who intend to initiate the procedure must be prepared to bear a significant cost for the indispensable assistance of a professional.
By Andrea Alberghini and Carolina Spera