This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
 

San Marino Looks For New Role, As Italy Investigates Possible VAT Fraud

Wednesday, February 24, 2010

San Marino’s government has begun an examination into all aspects of its economic future, particularly its relationship with Italy, but has been thrown off course by Italian investigations into possible value added tax (VAT) fraud involving San Marino.

Following the country’s recent difficulties, caused partly by the global economic recession, but also by the necessity to put in order its reaction to new international tax and banking secrecy regulations, San Marino’s government is looking at all possible solutions to re-launch its economy.

It is recognized that measures will be required, including new commercial regulations and laws regarding residency and a modernization of the country’s bureaucracy to attract corporate investment. In that respect, the government has committed San Marino to a rapid implementation of all European Union regulations, and the conclusion of all agreements which could be useful in helping the country’s businesses internationally.

At the same time, it is particularly looking for a normalization of its relationship with Italy as soon as possible. It feels that the previous efforts it has made to collaborate and achieve tax transparency with Italy have not, in its view, been sufficiently recognized by that country.

San Marino has hoped for some time to conclude the protocol for the exchange of tax information to the San Marino-Italy double taxation agreement, which was signed in 2002 but never ratified.

Conclusion of the agreements with Italy has been delayed, above all, by the operation of the Italian tax amnesty, which has been extended to end-April 2010. However, development of normalized relations with Italy has been further affected by the announcement of investigations into possible VAT fraud, involving San Marino, by Italy’s Guardia di Finanza (financial police).

It is reported that the Guardia di Finanza is investigating import-export transactions involving more than 500 companies. In particular, the Guardia has discovered that, from 2006 to 2008, purchases and sales to and from San Marino and Italy of computers, mobile phones and hi-fi equipment was, in certain cases, more than 50% of the total trading volumes of the similar products between Italy and much larger countries, such as Spain and the United Kingdom.

According to the Guardia, only a small proportion of those transactions consist of regular trade with San Marino; the remainder being swollen by artificial trades with the objective of VAT avoidance, and thereby lowering the price at which they can be sold in Italy.

The Guardia has announced that, out of the 65 companies already investigated, 42 have been charged with tax evasion. The total amount of the transactions found to have been fraudulent was said to reach over EUR400m (USD544m), with unpaid VAT of EUR125m. Those figures can be expected to rise significantly as further cases are verified.

In addition, in the same regard, the Guardia has doubled its presence on the borders between San Marino and Italy in order to check vehicles suspected of illegal trafficking in goods and money.


Mailing List

Click here to manage your mailing list preferences, or view our privacy statement.


The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




Latest News

Jersey Funds Pass GBP200bn Mark
11/9/2014
The Jersey Financial Services Commission has published figures for the quarter ended June 30, 2014, showing stability and signs of new growth.

Spain To Probe Homeowners' Gibraltar Ties
5/9/2014
Spain's Finance Minister, Cristóbal Montoro, has announced that the Government will look into the financial affairs of Spanish homeowners with ties to Gibraltar.

ATO Updates Discretionary Trust Partnerships Guide
3/9/2014
The Australian Taxation Office has released draft guidelines on how professionals can assess the tax risks from the use of partnerships of discretionary trusts and similar structures.

Canada Consults On Numerous Tax Law Amendments
3/9/2014
The Canadian Government is consulting on draft legislative proposals that would implement personal, business, and international tax measures announced in the Economic Action Plan 2014.

Gibraltar Delays Introduction Of New Companies Law
4/9/2014
Gibraltar has agreed to industry requests to delay the introduction of its new Companies Act and Insolvency Act until November 1, 2014.

Cayman To Waive Fees For Small Businesses
4/9/2014
The cost of trade and business licensing fees will be significantly reduced for micro- and small-business owners, under the Cayman Government's commerce incentives for 2014/2015.

Hong Kong Relaxes Restrictions For REITs
1/9/2014
The Securities and Futures Commission has announced that Hong Kong's revised Code on Real Estate Investment Trusts was gazetted on August 29, 2014, taking immediate effect.

HMRC Consults On Strict Liability Tax Penalties
26/8/2014
HM Revenue and Customs is consulting on the design of a proposed new strict liability criminal offence for those who fail to declare taxable offshore income and gains.

NZ Green Party Promises New Top Tax Rate In Election Bid
19/8/2014
New Zealand's Green Party has announced that it would raise the country's top tax rate if it wins this year's election.

HMRC To Shut Employee Benefit Trust Amnesty
19/8/2014
HM Revenue and Customs has confirmed that on April 1, 2015, it will withdraw a tax dispute settlement facility for businesses that used an Employee Benefit Trust before April 6, 2011.

US Territories Seek Clarity On Net Investment Income Tax
18/8/2014
The American Institute of Certified Public Accountants has written to the United States Congress to request clarification on the applicability of the net investment income tax to residents of the US Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands.

DeVere Criticizes UK Death Tax Plans On The Living
14/8/2014
The founder of DeVere, a financial consultancy firm, Nigel Green has hit back at a proposal from HM Revenue and Customs to use its new accelerated payment powers to require payment of inheritance tax from living individuals.

UK Reduces Scope Of New Property Gains Tax
8/8/2014
The British Property Federation and the Chartered Institute of Taxation have welcomed an announcement from HM Revenue and Customs that institutional investors and companies with diverse ownership will be excluded from plans for a new capital gains tax on UK properties sold by non-residents.

HKEx Sees Sharp Rise In IPOs
8/8/2014
Although Hong Kong Exchanges and Clearing's (HKEx) revenue and other income increased by only four percent year-on-year to reach HKD4.6bn (USD596m) in the first half of 2014, companies returned to the initial public offering (IPO) market to raise funds in Hong Kong.

Guernsey Consults On Domestic Pensions
6/8/2014
The Guernsey Financial Commission has launched a twelve week consultation on suggestions for revising the domestic Retirement Annuity Trust Scheme Rules.