The fiscal truce - part I

What's new in the 2023 Budget Law - Part I

Art. 1 paragraphs from 153 to 159 and from 166 to 251 of the new Financial Law are dedicated to the regularization of violations of various kinds, closure of pending disputes and scrapping or removal of files. In non-technical jargon, the provisions that deal with these issues are called "tax truce", the focal point of which lies in the resolution of non-regular positions in a facilitated manner.

The main measures of the tax truce contained in the Budget are of a different nature, namely:

1. Automated control of declarations
2. Regularization
3. Special revision

   AUTOMATED CONTROL OF DECLARATIONS

   The Financial Law confirms the possibility of defining the sums due following the automated control of the declarations relating to the current tax periodssee. articles 36-bis, Presidential Decree n. 600/73 and 54-bis, Presidential Decree n. 633/72, art. 2, paragraph 2, Legislative Decree. n. 462/97

   Why do we talk about facilitated definition? Because it facilitates the taxpayer in a non-regular positionwithin 30 days

   What happens, however, to the sums resulting from the notifications of irregularities whose installment payment is still in progress as of 1.1.2023? In these cases, if the installment has not already lapsed, the sums can be defined with the payment of the residual debt for various reasons (taxes, social security contributions, interest, additional sums) as well as a 3% reduction of the fine. And this relief is valid for all the sums involved, regardless of the tax period to which they refer (see art. 3-bis, Legislative Decree no. 462/97) but it must be kept in mind that all the sums paid on definable debts are not refundable.

   Payment of sums due in installments

   In addition to what has already been mentioned, the 2023 Budget confirms what has already been foreseen, i.e. the possibility of paying in installments for a maximum of 20 quarterly installments the sums emerging following an automated check of the declarations and formal control (pursuant to art. 36 bis, ter, Presidential Decree no. 600/73 and 54 bis Presidential Decree 633/72) regardless of the contested amounts: previously, in fact, for amounts lower than €5,000 a shorter installment was permitted, a maximum of 8 quarterly instalments.

   Extension of notification of tax bills payment

   For the notification of payment orders relating to the sums due for the automated control for 2019, the one-year deferral of the deadline is confirmed (art. 25, paragraph 1, letter a), Presidential Decree no. 602/73. Consequently, the notice can be notified within the fourth year following the year in which the return was submitted (rather than within the third year). Reference is therefore made to the fourth year following the deadline for payment of the single or last instalment, provided that the deadline for payment of the sums resulting from the declaration expires after 12/31 of the year in which the declaration is presented.

   REGULARIZATION OF FORMAL IRREGULARITIES

   In addition to automated control, as mentioned, the 2023 Budget also touches on the issue of formal regularization of irregularities. In particular, the possibility of regularizing the position with respect to irregularities, infringements or failure to comply with formal obligations committed until 31 October 2022 is confirmed

   To complete this regularization, the Legislator requires not only the removal of the irregularity and/or omission but also the payment of €200 for each tax period in which violations occurred. However, it is not always possible to regularize situations arising from formal irregularities. This is in fact excluded for:

   • acts of contestation or imposition of sanctions issued as part of the voluntary collaboration procedure (art. 5-quater, Legislative Decree no. 167/90);
   • emergence of financial and patrimonial assets established or held abroad;
   • violations already contested with acts that have become definitive to 1.1.2023.

   Another significant point is worth mentioning: for the violations covered by the PVC

   When it has emerged so far it is already present in our legal system, but it is important to remember that we are awaiting the intervention of the Revenue Agency

   SPECIAL REVIEW FOR TAX VIOLATIONS

   The last of the big news for the tax truce foreseen by the The 2023 budget that we see in this article is that of the so-called special repentance. When we talk about special forgiveness for tax violations we are referring to the taxes administered by the Revenue Agency whose regularization is different from that seen previously (i.e. the violations resulting from irregularities or formal violations in paragraphs 153 to 159 and from 166 to 173).

   When is special forgiveness permitted?

   • for violations not yet contested on the date of payment of the amount due or of the first installment with act of liquidation, assessment or recovery, dispute or imposition of sanctions, including friendly warnings (ex art. 36-ter, Presidential Decree no. 600/73);
   • for violations referring to validly submitted declarations.

   While the following are excluded:

   • for the emergence of financial and property assets established or held abroad while
   • for violations omitted, or presented more than 90 days after the deadline, as specified at the time of approval.

   To regularize the position, simply pay 1/18 of the minimum fine, in addition to tax and interest. This payment can be made in a single payment or in 8 quarterly installments of the same amount, with the first installment due on 31.3.2023. How is regularization perfected? In two alternative ways, with the removal of the irregularity or omission or with the payment of the first installment or the entire sum due by March 31st of this year. Added to this is the express confirmation of the validity of the amendments already made as of 1 January 2023.

   As also mentioned on formal irregularities, the issuing of the implementing provisions of these innovations is delegated to the Revenue Agency; therefore, it will soon be possible to have a more precise overall vision of these news.

   In the next article dedicated to the tax truce, we will instead deal with assessment notices, tax disputes and regularization of the failure to pay the installments due following the definitive institutions.

   Our tax team is always ready to answer any questions, contact us.