Details Of Declarations Under Tax Amnesty, As Italy Continues Search
Friday, February 19, 2010
Banca d’Italia, Italy’s central bank, has given a breakdown of
the amount of funds declared to date under the tax amnesty, while the Italian
Revenue Agency continues its actions against tax evasion – this time against
the Italian operations of Slovenian banks.
The amount of funds repatriated into Italy, according to information provided
to Banca d’Italia by financial intermediaries, registered a total of EUR85.1bn
(USD116bn) up to February 15, 2010.
Most of the declared funds, or EUR59.9bn, were found to have been in Switzerland.
Very much lower amounts were declared from Luxembourg (EUR7.3bn), Monaco (EUR4.1bn)
and San Marino (EUR3.8bn), followed by Austria and Liechtenstein, with around
EUR1.25bn each. Declarations below EUR1bn were made from the UK, France, Ireland,
Germany and the United States.
Just over EUR40bn of the declared funds were from current accounts, and almost
EUR33bn from debt securities and shares. Around EUR35bn of the funds was repatriated
as liquid funds, while EUR50bn was either repatriated without liquidating the
underlying financial asset, or regularized without repatriation, under the terms
of the amnesty.
Some controversy was aroused by the above statistics from Banca d’Italia,
given that Giulio Tremonti, Italy’s Minister of the Economy, had previously
announced that EUR95bn had been declared during the first stage of Italy’s
tax amnesty to mid-December last year.
However, subsequently, the Italian Revenue Agency issued a memorandum explaining
that the discrepancy between the two totals arose mainly from the repatriation
of the smaller amounts and certain assets (including works of art and precious
goods) which were excluded from the data collected by Banca d’Italia.
Banca d’Italia’s statistics also do not include funds which have
been declared but not yet repatriated, due to underlying complications. The
tax amnesty itself ends in April this year, but the final date for repatriations
to be concluded is December 31, 2010. The Revenue Agency and Tremonti’s
EUR95bn figure was based upon the amount of the 5% tax penalty paid up to December
15, 2009, of EUR4.75bn.
At the same time, the Guardia di Finanza (financial police) and the Revenue
Agency announced that, following previous visits last year to Swiss and Austrian
bank branches or subsidiaries in Italy, and to other financial intermediaries
close to San Marino, visits have now also been made to Slovenian bank branches
in Italy; to Italian banks with branches near to the frontiers with Slovenia
and Austria; and Italian financial intermediaries with shareholdings in Slovenian
As previously, the investigations were aimed at verifying the completeness
and accuracy of information that should have been transmitted by those branches
and offices to the Revenue Agency’s database of all foreign transactions
made by their Italian clients.