WellTax Blog

In 2017, record recovery of tax evasion, over 20 billion euros

February 1, 2018

New record in 2017 for the fight against tax evasion. The recovery activity implemented by the financial administration brought 20.1 billion euros back into the state coffers, with an increase of 5.8% compared to 2016. The final balance was made by the general director of the Revenue Agency Ernesto Maria Ruffini, at the presentation of the annual results. “The numbers show us that it is not true that a tax system that is closer to taxpayers is a tax system that is weaker with tax evaders”, commented Prime Minister Paolo Gentiloni.

Next step, commit to further reducing taxes starting with those on labor (“everything possible has been done, it can be said that more could have been done but the conditions of the economic cycle ask us to do more, especially to young people, women, the South, where work and investments are more difficult”). «We are not ashamed of these results» of the Revenue, added the prime minister, «when the government presents tables showing that tax collection and the proceeds from the fight against tax evasion produce increases in revenue, it is not reluctant to show the results. Because it is from the increase in fiscal responsibility and simplicity that the tax reductions that we know are necessary for the development of our economy can come.”

The Prime Minister: record levels for manufacturing
More generally, the head of government does not fail to highlight the positive phase in which the country finds itself. «There is a favorable situation in the economic cycle that has never been so shared in all the economic areas of the world. Italy is part of it. We must be satisfied, even the very recent data from this morning tell us that for manufacturing activity we have been at record levels for seven years, with an index that has surpassed France and is approaching Germany. Indeed, all orders are being placed at a very rapid pace and speed.” The prime minister’s request is to move in the direction already traced. «Our responsibility is to ensure that this economic situation is not squandered at a global or national level: there are many exercises apparently underway to squander this favorable situation at a national level». And therefore we must continue «the reforms and the work that the governments of this legislature have set out: the voters will decide in what forms and ways. But we must not lose our bearings.”

Scrappage proceeds at 6.5 billion
Returning to the Revenue “budget”, the facilitated definition of tax bills (so-called “scrapping”) guaranteed a revenue of 6,000,000 in 2017. 5 billion euros, a figure that brought the annual figure from the Revenue Agency to 12.7 billion. There are 1.5 million taxpayers who have applied for scrapping, while 6.3 million bills and notices have been subject to payment of installments. Of the over 6.5 billion in collections, 4 billion were collected on behalf of the Revenue Agency, while INPS and Inail collections amounted to approximately 1.5 billion. The amount collected on behalf of the Municipalities amounts to 0.5 billion. For other state bodies (ministries, prefectures, other agencies) the balance registers 0.1 billion, while for Regions, Social Security Funds and Chambers of Commerce it stands at approximately 0.3 billion. As regards payment plans, 25% of taxpayers have preferred the single instalment, while 71% are paying in 5 instalments. The remaining 4% chose one of the other options (2, 3 or 4 instalments). 66% of membership applications were submitted online (website, email or certified email), 32% went to the counters and 2% appealed by registered mail or ordinary mail.

For Padoan, the greatest criticality is VAT evasion.
The area of «greatest criticality» in the fight against evasion is VAT, «a process that takes time but there are we are taking successive steps year after year”, from split payment to electronic invoicing. However, the Minister of Economy Pier Carlo Padoan defines the picture drawn by Ernesto Maria Ruffini as “encouraging”. «Collection is growing. It is not a one-off phenomenon, but a structural one and this allows us to look to the future with greater confidence. Here will be the resources to continue the reform strategy”.

Ruffini: making peace with those who feel “oppressed”
“We must make peace with the majority of citizens who perceive the system as too oppressive” is the hope expressed by the general director of the Revenue Agency highlighting the goals achieved thanks to compliance strategies. A path which, he said, must still be pursued in a continuous dialogue between administration and taxpayers.

Last year 2.4 million pre-compiled declarations, +71%
In 2017, 2.4 million pre-compiled declarations were sent online by citizens, with an increase

Related articles

12 February, 2024

Considering Purchasing Property Through a Limited Company in the UK: A Comprehensive Guide

03 January, 2024

What are the best practices for filing Corporation Tax?

Search something