Italy has been amending its Law Decree No. 34 on a regular basis since the start of the pandemic. It made some revisions again to Decree No. 34 on March 30, 2023.
The “Decree” was amended. This is to ensure that families and businesses receive much-needed support. The increase in gas and power prices has affected households and companies. The new tax measures included in Decree No. 34 include deadline extensions. The extensions are for different settlement procedures for tax litigation. These pending legal cases were all introduced in Law No. 197 of December 29, 2022. It’s also known as the “Italian Budget Law of 2023.”
The Decree states that it’s providing new policies. This includes an extension to the deadlines for different settlement processes. The deadlines are also earmarked for unsettled tax litigation.It was then launched by the Italian Budget Law.
The extended deadlines cover a wide array of settlement processes. These include cases like:
Settlements of Formal Violations
Settlements of Pending Tax Disputes
Settlements of Tax Assessment Notices
Settlements of Tax Disputes Before the Supreme Court.
Special Voluntary Settlements
Amendments to Judicial Conciliation
Italian taxpayers can settle tax disputes that are pending before the courts. They can do so by coming to an agreement. This benefits from the application of penalties down to 1/18 of the smallest penalty. The deadline for establishing an agreement with the IRA is September 30, 2023. The previous deadline was June 30, 2023.
Amendments to Settlements of Formal Violations
Taxpayers may also correct formal violations done before October 31, 2022. This refers to offenses that don’t impact the determination of the tax basis and payments. Taxpayers can correct the violations by paying €200. This is for every fiscal year relevant to the case. They can do this in a single installment by October 31, 2023. The previous deadline was March 31, 2023). They also have the option to do it in two installments. They can pay by October 31, 2023, and on March 31, 2024.
Decree No. 34 was already entered into force on March 31, 2023.
Amendments to Settlements of Pending Tax Disputes
The country’s taxpayers can also resolve their pending tax disputes. They can do this before the courts of the first and second instances on February 15, 2023. The previous deadline fell on the 1st of January this year. They can then push through with a judicial settlement by September 30, 2023. The previous deadline was June 30, 2023. They can enjoy the lowering of penalties to 1/18th of the smallest charge.
Taxpayers can also settle tax disputes pending before the Supreme Court. This was for January 1, 2023. They can do so by coming to an accord with the Italian Revenue Agency by September 30, 2023. The previous deadline was June 30, 2023). They can have the penalties lowered to 1/18th of the smallest penalty.
Italy’s parliament must also bring the Decree into law within 60 days from the date it was then published. They can do this with all the prospective amendments.
Amendments to Settlements of Tax Assessment Notices
Italy’s taxpayers can resolve assessment notices with penalties lowered to 1/18. There are two conditions they have to meet for them to qualify for this procedure. First, the assessment or recovery notices must become challenging on January 1, 2023. Second, it should be served by March 31, 2023.
Decree No. 34 extended this procedure to also cover tax credit recovery notices. These are notices finalized between January 2, 2023, and February 15, 2023.
Amendments to Settlements of Tax Disputes Before the Supreme Court
Italy’s taxpayers can also work out pending tax disputes before the Supreme Court on January 1, 2023. They can do this by coming to an arrangement with the country’s Revenue Agency. This should happen by September 30, 2023. The previous deadline was set on June 30, 2023. Taxpayers can take advantage of the application of penalties. These are now lowered to 1/18th of the smallest penalty.
Amendments to Special Voluntary Settlements
It’s possible for Italy’s taxpayers to now correct the tax returns already filed. This includes individual income tax returns and corporate income tax returns. It also covers local income tax returns and value-added tax returns. Taxpayers can do this by paying the extra tax, interest, and penalties. These were already lowered to 1/18 of the smallest penalty in a single installment. They should pay by September 30, 2023. The previous deadline was set for March 31, 2023. They can also make eight installments at most. Payments are also done by quarter. It can start from September 30, 2023. The previous deadline was set for March 31, 2023.
The Law Decree No. 34 was already published on March 30, 2023. It appeared in the Official Gazette No. 76. The Decree was also entered into force on March 31, 2023. There’s a condition that the Decree must become brought into law by the Italian parliament. This must be all done with the possible amendments within 60 days from the date of publication.
The final form of Italy’s Law Decree No. 34 was also approved by the Senate on May 25, 2023. Decree 34/2023 had a provision for a 52% discount on specific payback amounts. The paybacks were reportedly requested by the Regions and Autonomous Provinces. It’s for the medical device companies that haven’t begun litigation on the matter. It also covers companies that have waived any current litigation.