1st March 2017
In a world of constantly changing tax requirements and a global commitment to preventing fraudulent behaviour, regular reviews of procedures should be expected. And with many worldwide economies attempting to claw back finances in light of large deficits, legislative changes will become increasingly common.
As a case in point, the OECD recently outlined a number of suggestions for Italy to help the country in its attempts to improve economic growth, with a real emphasis being placed on increasing tax compliance levels.
Anti-tax evasion recommendations for Italy
As part of its 2017 Economic Survey for Italy, the OECD suggested that tax compliance enhancements could be a significant factor in improving the country’s fortunes. While the Government has certainly made a step in regaining finances previously lost to evasive activity, the Organisation for Economic Co-operation and Development suggested more can be done.
In an analysis of existing systems, the OECD advised that Italy “has ample scope to improve human resources management and use more extensive information and technology (IT) tools. IT is crucial to extend the use of e-invoicing and improve value-added tax compliance.”
It was also suggested that the threshold of cash payments is lowered to similar levels in France as a further means of improving compliance, along with increasing property taxes, with the OECD claiming that the “recent abolition of the property tax on first residences was a step backward.”
What does this mean for contract professionals?
For contractors considering an opportunity in Italy and the agencies making these placements it’s vital to stay on top of such developments in order to avoid being caught out by future changes. As an increasing number of authorities target tax evaders as a means of recovering much needed finances, wrongful activity will be heavily penalised, even if it isn’t intentional.
It’s for this reason that recruiters and contractors alike should speak to an expert so they can rest assured that they are operating on the right side of the law.
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