News: February 2012

The Italian job

We often complain about HMRC’s heavy-handed tactics in collecting tax, but we have it easy compared to what Italian taxpayers will be facing soon in a crackdown on tax evasion. The Italian tax authorities have just released the following mind-boggling data and apparently nobody is disputing its accuracy:

• There are 4 million taxpayers in Italy, with 66% claiming a gross annual income of £16,500 or less.
• 188,000 of taxpayers declaring income up to that level own a Maserati, Ferrari or Porsche and 518 of them own and run a private jet or helicopter.
• Tax evasion is estimated to total Euro 275 billion each year.
• Spot visits to businesses have resulted in admissions that true profits are 6 times what have been declared.