Web tax

Increasing transparency for web multinationals

Alessandro Dragonetti Alessandro Dragonetti

The most important effect of the so-called “web tax” – applicable to foreign web multinationals operating in Italy – will be the total disclosure of their activities to the Tax Authorities, besides the increase of tax revenue. Alessandro Dragonetti speaks about this during an interview given to Legal magazine and analyses the steps companies and tax consultants must take to apply the web tax as well as its effects on investment by concerned companies.

Tax advisors will assist web multinationals with the voluntary disclosure procedure. This is the result of the so-called “web tax”, introduced by mid-year Stability Law in order to allow the Tax Authorities to track activities carried out in Italy by web multinationals that will apply for the voluntary disclosure procedure. The web tax concerns those companies having a turnover exceeding one billion Euros and carrying out activities in Italy exceeding a 50-million Euro value, which will have the opportunity to enter into advance agreements with the Revenue Office and avoid being subject to investigations and penalties. Tax consultants play a crucial role in analysing and evaluating the existence of possible problems in the tax structure as well as in its compliance with national and international regulations.

“The first thing that concerned multinationals should do” stated Alessandro Dragonetti “is carrying out an accurate analysis of the group tax structure and then decide whether or not to apply for the disclosure procedure. A virtuous collaboration with the Revenue Office can represent an effective tax risk management model.” Moreover, “the real plus for the Tax Authorities is the total disclosure of activities multinationals carry out in Italy and, therefore, their tracking”.