The fifth scrapping is coming

New amnesty for those who have not paid tax debts and tax bills.

The scrapping quarter was a flop. The Government did not collect as much as it hoped: mainly because few taxpayers joined and many of those who did missed some installments, thus losing the benefit. Consequently, the Executive is studying two proposals aimed at obtaining greater participation of taxpayers in the discounts on unpaid taxes. One of these is the scrapping quinquies. Let’s take a closer look at what’s on the horizon and how to close debts with the Revenue Agency.

The holes of escape

The problems of the Italian tax system do not only concern the phase of

verification (which includes just under 5% of taxpayers, usually those included in the so-called “selective lists” of the categories with the highest risk of tax evasion), but also those of the collection.

According to the Court of Auditors, with respect to the amounts requested by the Revenue Collection Agency, only 20% is recoveredThe other 80% is uncollectable for various reasons: some taxpayers have no assets, the credits expire over time, or the procedures do not lead to the awarding of the seized assets.

The results of tax recovery are more than modest. The analysis of the accounting magistrates shows a picture in which those who do not pay taxes have a high probability of evading controls. In the event of litigation, many prefer not to respond to the requests of the State, hoping to obtain a scrapping of the registration on the roll. When the scrapping is granted, many adhere, pay the first installment and then disappear again.

The amnesty for those who have fallen through the fourth scrappage scheme

The first solution that the Government is apparently thinking of to recover the sums estimated but never collected is to allow those who have fallen by the last scrapping to get back on track. Therefore, there would be a sort of

amnesty for those who could not or did not want to pay, or perhaps simply forgot. In practice, it would be a extension further.

Those who had submitted the relevant application at the time would therefore be readmitted to scrapping.

The opening of the fourth scrappage scheme to other taxpayers too

It is also being considered to allow access to the scrapping four also to taxpayers who, at the deadline for requesting admission to the benefit, had not submitted an application but now wish to do so. It is therefore worth remembering what the conditions are for adhering to the latest amnesty.

The scrapping quarter provided for the possibility of paying the tax bills relating to the period January 1, 2000 – June 30, 2022 with a single payment (interest-free) or in a maximum number of 18 rate (5 years) consecutive, of which the first two, with expiry on October 31 and November 30, 2023. The remaining installments, spread over the following 4 years, were to be paid on February 28 and May 31 last (deadline then postponed to June 5). The remaining installments will be paid on July 31 and November 30 of each year starting from 2025.

Clearly, the reopening of the terms for access to the scrapping for those who had not submitted an application will lead to a new payment schedule.

The new quinquies scrapping

However, it is rumoured that the executive is also considering a new amnestywhich will probably be called scrapping quinquies.

The Deputy Minister of Economy Maurizio Leo met with the National Association of Accountants (ANC). The possibility of a completely new amnesty emerges from the note of the professional union, which acknowledges the issues addressed with the Government. Specifically, it states that «with a view to creating paths to support taxpayers, the possibility of reopening of facilitated definitions (fourth scrapping) as well as the introduction of a new institution such as the possible quinquies scrapping».

The terms and conditions of the new benefit to pay off tax debts are not yet clear. For this we will still have to wait, perhaps the fiscal annex to the end-of-year maneuver (the Budget Law) will be needed.