Table Of ContentGlobal Forum on Transparency and Exchange of Information GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE
for Tax Purposes
OF INFORMATION FOR TAX PURPOSES
PEER REVIEWS, COMBINED: PHASE 1 + PHASE 2,
incorporating Phase 2 ratings – ITALY
Peer Review Report
The Global Forum on Transparency and Exchange of Information for Tax Purposes is the
multilateral framework within which work in the area of tax transparency and exchange of
information is carried out by 120 jurisdictions, which participate in the Global Forum on an Combined: Phase 1 + Phase 2,
equal footing.
The Global Forum is charged with in-depth monitoring and peer review of the implementation incorporating Phase 2 ratings
of the international standards of transparency and exchange of information for tax purposes.
These standards are primarily refl ected in the 2002 OECD Model Agreement on Exchange
of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model
Tax Convention on Income and on Capital and its commentary as updated in 2004. The P ITALY
standards have also been incorporated into the UN Model Tax Convention. ee
r R
The standards provide for international exchange on request of foreseeably relevant e
v
information for the administration or enforcement of the domestic tax laws of a requesting ie
w
party. Fishing expeditions are not authorised but all foreseeably relevant information must be R
e
provided, including bank information and information held by fi duciaries, regardless of the p
o
r
existence of a domestic tax interest or the application of a dual criminality standard. t C
o
All members of the Global Forum, as well as jurisdictions identifi ed by the Global Forum m
b
as relevant to its work, are being reviewed. This process is undertaken in two phases. in
e
Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework for d P
the exchange of information, while Phase 2 reviews look at the practical implementation of ha
s
that framework. Some Global Forum members are undergoing combined – Phase 1 and e
1
Phase 2 – reviews. The Global Forum has also put in place a process for supplementary +
reports to follow-up on recommendations, as well as for the ongoing monitoring of Ph
a
jurisdictions following the conclusion of a review. The ultimate goal is to help jurisdictions se
tinof oerfmfeacttiiovenl yfo imr tpalxe mpuernpto tshees i.n ternational standards of transparency and exchange of 2, inc
o
All review reports are published once approved by the Global Forum and they thus represent rpo
agreed Global Forum reports. ra
tin
For more information on the work of the Global Forum on Transparency and Exchange of g P
Information for Tax Purposes, and for copies of the published review reports, please refer to ha
s
www.oecd.org/tax/transparency and www.eoi-tax.org. e 2
ra
Consult this publication on line at http://dx.doi.org/10.1787/9789264205741-en. tin
g
s
This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and IT
statistical databases. A
LY
Visit www.oecd-ilibrary.org for more information.
ISBN 978-92-64-20573-4
9HSTCQE*cafhde+
23 2013 56 1 P
Global Forum
on Transparency
and Exchange
of Information for Tax
Purposes Peer Reviews:
Italy 2013
COMBINED: PHASE 1 + PHASE 2,
INCORPORATING PHASE 2 RATINGS
November 2013
(reflecting the legal and regulatory framework
as at March 2011)
ThisworkispublishedontheresponsibilityoftheSecretary-GeneraloftheOECD.
Theopinionsexpressedandargumentsemployedhereindonotnecessarilyreflect
theofficialviewsoftheOECDorofthegovernmentsofitsmembercountriesor
thoseoftheGlobalForumonTransparencyandExchangeofInformationforTax
Purposes.
Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof
orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand
boundariesandtothenameofanyterritory,cityorarea.
Pleasecitethispublicationas:
OECD(2013),GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeer
Reviews:Italy2013:Combined:Phase1+Phase2,incorporatingPhase2ratings,OECDPublishing.
http://dx.doi.org/10.1787/9789264205741-en
ISBN978-92-64-20573-4(print)
ISBN978-92-64-20574-1(PDF)
Series:GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeerReviews
ISSN2219-4681(print)
ISSN2219-469X(online)
CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/publishing/corrigenda.
©OECD2013
Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECD
publications,databasesandmultimediaproductsinyourowndocuments,presentations,blogs,websitesand
teachingmaterials,providedthatsuitableacknowledgmentofOECDassourceandcopyrightownerisgiven.
Allrequestsforpublicorcommercialuseandtranslationrightsshouldbesubmittedtorights@oecd.org.
Requestsforpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbeaddressed
directlytotheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdu
droitdecopie(CFC)[email protected].
TABLE OF CONTENTS – 3
Table of Contents
About the Global Forum 5
Executive summary 7
Introduction 11
Information and methodology used for the peer review of Italy 11
Overview of Italy 12
Recent developments 19
Compliance with the Standards 21
A. Availability of Information 21
Overview 21
A1 Ownership and identity information 23
A2Accounting records 44
A3 Banking information 49
B. Access to Information 53
Overview 53
B1 Competent Authority’s ability to obtain and provide information 54
B2 Notification requirements and rights and safeguards 63
C. Exchanging Information 65
Overview 65
C1 Exchange-of-information mechanisms 67
C2 Exchange-of-information mechanisms with all relevant partners 74
C3 Confidentiality 78
C4 Rights and safeguards of taxpayers and third parties 80
C5 Timeliness of responses to requests for information 81
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
4 – TABLE OF CONTENTS
Summary of Determinations and Factors Underlying Recommendations 89
Annex 1: Jurisdiction’s Response to the Review Report 93
Annex 2: List of all Exchange-of-Information Mechanisms in Force 96
Annex 3: List of all Laws, Regulations and Other Material Received 101
Annex 4: People Interviewed During On-Site Visit 104
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
ABOUT THE GLOBAL FORUM – 5
About the Global Forum
The Global Forum on Transparency and Exchange of Information for Tax
Purposes is the multilateral framework within which work in the area of tax
transparency and exchange of information is carried out by over 120 jurisdic-
tions, which participate in the Global Forum on an equal footing
The Global Forum is charged with in-depth monitoring and peer review of
the implementation of the international standards of transparency and exchange
of information for tax purposes These standards are primarily reflected in the
2002 OECD Model Agreement on Exchange of Information on Tax Matters
and its commentary, and in Article 26 of the OECD Model Tax Convention on
Income and on Capital and its commentary as updated in 2004 The standards
have also been incorporated into the UN Model Tax Convention
The standards provide for international exchange on request of foresee-
ably relevant information for the administration or enforcement of the domes-
tic tax laws of a requesting party Fishing expeditions are not authorised but
all foreseeably relevant information must be provided, including bank infor-
mation and information held by fiduciaries, regardless of the existence of a
domestic tax interest
All members of the Global Forum, as well as jurisdictions identified by
the Global Forum as relevant to its work, are being reviewed This process is
undertaken in two phases Phase 1 reviews assess the quality of a jurisdiction’s
legal and regulatory framework for the exchange of information, while Phase 2
reviews look at the practical implementation of that framework Some Global
Forum members are undergoing combined – Phase 1 and Phase 2 – reviews
The ultimate goal is to help jurisdictions to effectively implement the interna-
tional standards of transparency and exchange of information for tax purposes
All review reports are published once adopted by the Global Forum
For more information on the work of the Global Forum on Transparency
and Exchange of Information for Tax Purposes, and for copies of the pub-
lished review reports, please refer to wwwoecdorg/tax/transparency and
wwweoi-taxorg
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
EXECUTIVE SUMMARY – 7
Executive summary
1 This report summarises the legal and regulatory framework for
transparency and exchange of information of Italy The international standard
which is set out in the Global Forum’s Terms of Reference to Monitor and
Review Progress Towards Transparency and Exchange of Information, is
concerned with the availability of relevant information within a jurisdiction,
the competent authority’s ability to gain timely access to that information,
and in turn, whether that information can be effectively exchanged with its
exchange of information partners
2 Italy has a long history of developing its capacity to exchange infor-
mation for tax purposes in an effective manner It has an extensive network
of 85 bilateral exchange of information (EOI) arrangements contained in its
DTCs and covering 91 jurisdictions Although Italy has not signed any tax
information exchange agreements (TIEAs) to date, it has initialled eight such
agreements and is currently negotiating EOI mechanisms to the standard with
more than 40 jurisdictions It is noted that the timeframe to bring the treaties
signed into force can in some cases take several years It is nevertheless also
noted that the time frame to bring the recent protocols signed with Cyprus1
and Malta was about one year and Italy will continue its efforts to ensure the
ratification of its treaties expeditiously As a member of the European Union2
1 1 Footnote by Turkey: The information in this document with reference to
« Cyprus » relates to the southern part of the Island There is no single authority
representing both Turkish and Greek Cypriot people on the Island Turkey rec-
ognizes the Turkish Republic of Northern Cyprus (TRNC) Until a lasting and
equitable solution is found within the context of the United Nations, Turkey shall
preserve its position concerning the “Cyprus issue”
2 Footnote by all the European Union Member States of the OECD and the European
Commission: The Republic of Cyprus is recognised by all members of the United
Nations with the exception of Turkey The information in this document relates to the
area under the effective control of the Government of the Republic of Cyprus
2 The current EU members are: Austria, Belgium, Bulgaria, Cyprus (see footnote above),
the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
8 – EXECUTIVE SUMMARY
(EU), Italy is covered by the provisions of the EU Council Directive 77/799/
EEC of 19 December 19773 concerning mutual assistance by the competent
authorities of the Member States in the field of direct taxation and taxation
of insurance premiums Italy is also a party to the Council of Europe and
OECD Convention on Mutual Administrative Assistance in Tax Matters4 and
a signatory of the protocol to this convention
3 Besides exchange of information on request in the field of direct taxa-
tion, representing more than 1 000 requests received over the last three years,
Italy is involved, as a member of the European value-added tax (VAT) system,
in VAT exchange of information (more than 2 000 incoming requests received a
year) Italy also has strong spontaneous and automatic exchange of information
programs, under the scope of its double taxation convention (DTCs) but also
the EU framework, in particular under the EU Savings Directive 2003/48/EC
4 The Italian tax legislation grants broad powers to revenue authori-
ties to compel the provision of information and these measures can be used
for EOI purposes in the same way as for domestic purposes This informa-
tion can be accessed by various means; in writing (questionnaires), visits to
the premises of businesses, during tax examinations or by testimonies As
regards EOI, the competent authority is the Dipartimento delle Finanze, one
of the Directorates of the Italian Ministry of Economy and Finance, with
two authorised representatives, the Agenzia delle Entrate and the Guardia di
Finanza These two authorised representatives have strictly the same powers
to answer incoming requests
5 Responses to incoming requests are furnished to requesting par-
ties within 90 days in 15% of cases It is noted that the Italian authorities
should speed up the provision of information and implement, as a routine, the
sending of status updates of the requests Where delays in the provision of
information have been mentioned by Italy’s partners, these partners have also
highlighted the high quality of the responses furnished by Italy’s competent
authorities Over the last three years there were only a few instances where
Italy was not in position to provide the information requested and this was
usually due to missing elements in the requests themselves
3 This Directive came into force on 23 December 1977 and all EU members were
required to transpose it into national legislation by 1 January 1979 It has been
amended since that time A new Mutual Assistance Directive was adopted by the
EU Council on 7 December 2010 and will enter into force on 1 January 2013
4 Jurisdictions covered by the provisions of this convention are: Azerbaijan,
Belgium, Denmark, Finland, France, Iceland, Italy, the Netherlands, Norway,
Poland, Sweden, Ukraine, the United Kingdom, and the United States In addi-
tion, Canada, Germany and Spain have signed the Convention and are awaiting
ratification
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
EXECUTIVE SUMMARY – 9
6 The Italian legal and regulatory framework ensures the availability of
ownership information concerning companies and partnerships This is due
to multiple requirements to maintain information imposed on registration
authorities (Chambers of Commerce, Prefectures and Agenzia delle Entrate),
the businesses themselves, and all entities and professions covered by the
requirements of the anti money laundering/combating the financing of ter-
rorism (AML/CFT) legislation Ownership information on trusts and founda-
tions is also available thanks, in particular, to the registration requirements
imposed on these entities and arrangements Similarly, a good framework
exists which requires full accounting records, including underlying documen-
tation, to be kept for ten years Financial institutions are required to maintain
records of individual transactions and, under AML/CFT legislation, customer
identification records are maintained for ten years
7 Notwithstanding the sometimes slow ratification of international
agreements and the need to answer incoming requests for information in 90
days or to provide an update of status as a routine, comments received on
the experience of a number of Global Forum members with Italy indicate
that Italy is fully committed to the international standards of transparency
and exchange of information for tax purposes Italy is an important partner,
actively exchanging information for international tax matters with a very large
network of partners
8 Italy has been assigned a rating5 for each of the 10 essential elements
as well as an overall rating The ratings for the essential elements are based
on the analysis in the text of the report, taking into account the Phase 1
determinations and any recommendations made in respect of Italy’s legal
and regulatory framework and the effectiveness of its exchange of informa-
tion in practice On this basis, Italy has been assigned the following ratings:
Compliant for elements A1, A2, A3, B1, B2, C2, C3 and C4, and Largely
Compliant for elements C1 and C5 In view of the ratings for each of the
essential elements taken in their entirety, the overall rating for Italy is Largely
Compliant
5 This report reflects the legal and regulatory framework as at the date indicated
on page 1 of this publication Any material changes to the circumstances affect-
ing the ratings may be included in Annex 1 to this report
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – ITALY © OECD 2013
