RW: Controls and compliance letters

RW: Controls and compliance letters

The controls between fiscal authorities and banks, in Europe and in the world, are becoming to be at an operating speed in Italy. The system born from FACTA agreement with USA and from the multilateral agreement called Common Reporting Standard with the other countries, is becoming en efficient tool in order to verify italian tax payers who hide bank accounts and portfolio abroad.

This year, the Italian Tax authorities are checking the fiscal year 2017, with more informations than the previous years. They are going to send several “compliance letter” to all taxpayer that own portfolio or bank accounts abroad without inserting the balances or other main information in form RW of their tax return, and without taxing the financial revenues.

The way to proceed with a “compliance letter” is provided by Decree 6/11/2020 issued by Italian Tax Authorities. From the letters sent in this days, it seams to be a really meticoulos tool on founding the detailed information. In particular, italian tax authorities receive from the other foreign fiscal administrations the balance of the bank account or portfolio, the interests, dividends earned and the groos amount of security sales for each italian tax payer.

The compliance letter give the possibility to modify the tax return inserting the homitted form RW with all this information, paying a reducted penalty if the modification is done before the formal verification from tax authorities.