Mandatory deadline for applications: July 31st, 2013
The Italian Revenue Agency is launching a pilot project aimed at setting an agreed upon framework in light of possible implementations of a cooperative compliance programme for Large Business Taxpayers.
Scope of the Pilot
The project aims at identifying the main features of a new form of relationship between Large Business Taxpayers and the Italian Tax Administration, so to make the current risk management monitoring activity evolving into a more advanced programme consistent with the recent recommendations by the OECD (Co-operative compliance: a framework – from enhanced relationship to co-operative compliance).
As such, the new regime implies that taxpayers shall adopt compliant behaviors based on transparency and disclosure in dealing with the Tax Administration.
The Revenue Agency, in turn, should be prepared to meet taxpayers’ needs and to resolve relevant issues in a timely and effective manner.
Therefore, the underlying purposes is intended to promote an ex ante approach rather than a traditional ex-post approach. It creates benefits in terms of taxpayers’ compliance and of providing certainty and predictability in advance.
Description of the project
The Large Business Taxpayers that will be admitted to the pilot project will engage with the Italian Revenue Agency (more specifically, with the Large Business Taxpayers Division of the Central Directorate for Tax Assessment) in ad-hoc technical tables to examine several issues jointly, e.g. features of their internal tax control framework, features of the new approach, obligations or incentives for the taxpayers, responsibilities for the Agency, and so forth.
Afterwards this testing phase is concluded and the regime is implemented through appropriate legislative measures, the taxpayer which is entered into the programme should be able to reduce fulfillments, to obtain several advantages and to take benefit, as much as possible, of advance legal certainty on specific transactions performed.
Conditions for being admitted to the Pilot Project
Based on the above, taxpayers willing to take part to the project can apply under the terms described in the following paragraph. For feasibility reasons, though, the number of participants is limited. The Italian Revenue Agency reserves the right to select the applications, based on the following requirements:
Filing of the applications
In order to allow a prompt activation of the pilot project, the interested taxpayers can file their application not later than July 31st, 2013.
The application should include:
Our considerations The scope of the programme is still vague but might represent an interesting opportunity to liaise with the Italian tax authorities and discuss with them the major issues MNEs are encountering in their Italian operations. In this respect, CMS can help you both in packaging the documentation and in filing the application within the deadline of July 31st.