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On 11 November 2016, the European Commission published a study on taxation trends in the European Union, Iceland and Norway for the years 2002-2014.

According to the latest data by the Bank of Italy SMEs still experience difficulties to access finance. “Tax incentives are one of the most effective tools to boost investments” declared Giuseppe Bernoni, “from benefits for companies investing in R&D and new technology, to measures for innovative start-ups, to the extension of terms for the application of exceptional depreciation rates.” And as an alternative to bank financing: “Incentives to companies reinvesting financial proceeds or to shareholders subscribing capital increases to fuel growth.”

Law Decree no. 193 dated 22 October 2016 introduced new measures, such as the abolition of Equitalia (Italian tax collection office) starting from 1 July 2017, regulations on local tax collection and strengthening the collection terms in general, the reopening of the terms for the participation in the voluntary disclosure programme, as well as of provisions concerning VAT more strictly, aimed at preventing tax avoidance.

The Council of the European Union accorded Italy an extension to continue applying – up to 31 December 2019 – a special derogation from the provision of Directive 2006/112/CE, concerning the limitations to deduction of VAT borne on the purchase of some kinds of means of transport and on the related expenses. The extension of such limits is aimed at significantly reducing the administrative burden and to prevent tax evasion.

30.000 Euro is the new extended limit up to which the application for refund is allowed without the need of the stamp of approval by an accountant or signature by the statutory auditors as regards those subjects indicated in art. 03-bis, para. 3 of Presidential Decree 633/72, nor of the granting of a financial guarantee by those subjects indicated in art. 38-bis, para. 4 of Presidential Decree 633/72.

The use of vouchers is constantly increasing on the market, as it makes it easier for consumers to access goods without using cash. With Directive 2016/1065 dated 27 June 2016 the Council of the EU recognised the need to introduce specific norms on the VAT treatment of vouchers throughout the EU and set forth new provisions aimed at regulating their circulation and redemption. The new common norms, which must be implemented in the domestic legislation, do not differ significantly from the standpoint of the Italian Tax Authorities over the years.

The budget bill for 2017, within the “Industry 4.0” strategy, will renew those provisions allowing “super-amortization”, and introduce “hyper-amortisation” for some specific capital goods, in order to incentivize the technological update of Italian businesses, their competition on domestic and international market and, more generally, economic recovery.

Giulio Tedeschi, Partner at Bernoni Grant Thornton and Contract Professor of Best practice methodology with the Department of Economics at Università Cattolica in Milan, collaborated in drafting the volume “Il bilancio di esercizio: profili aziendali, giuridici e principi contabili” (Financial Statements: corporate and legal issues and accounting principles), by Prof. Angelo Palma, published by Giuffrè. In particular, he authored chapter XII: “from operating income to taxable income”.

Gianni Bitetti will participate as speaker and coordinator at a conference on Transfer Pricing and the preparation of domestic TP documentation organised by the Milan Roll of Chartered Accountants

The article analyses a reverse merger operation from an accounting, corporate and tax perspective. The analysis will also consider the implications related to the regulation on tax consolidation and to circular letter no. 6/E dated 30 March 2016 on leveraged buyout.

Changes introduced with the provision on the regularization of tax bills

The International Business Report shows that in Italy, 72% of businesses say they have not changed their businesses approach to taxation, while only 14% of businesses have taken measures in line with the OECD programme.

The Italian draft Budget Law for 2017 provides for the introduction in the domestic legislation of VAT grouping schemes.

New white list: effects on taxation of financial revenue

The tax benefit aimed at facilitating the assignment and transfer of movable and immovable assets registered in public records to shareholders is substantially relevant for income tax purposes. However, it can have also VAT implications.

While UK Prime Minister Theresa May has said she will begin the process of taking the country out of the EU by the end of March 2017, the nature of what kind of subsequent trade deal May might agree with the EU remains undetermined