Municipal bankruptcy, tax collection capacity at 24% in Calabria

ROME Recent research released by the National Foundation of Accountants Southern Regions crystallizes the difficult moment of Italian entities, especially with reference to the South. Three regions present the worst situations of municipal bankruptcy and they are also the ones who struggle most to collect taxes. Calabria’s collection capacity is stuck at 24%. There are a total of 470 municipalities in crisis, of which 257 are in near-failure and 213 are in bankruptcy. According to the Foundation’s researchers, among the reasons for the default, “one of the triggering factors is the inability to collect and therefore ensure the organization has the effectiveness of the resources necessary to guarantee the sustainability of expenses without generating deficits”. The figure increases, according to experts, in small communities. “Almost 45% of cases concern entities with a population of less than 5 thousand inhabitants.” Same situation in pre-failing institutions with a population of less than 5 thousand inhabitants. Only 2% are placed in a segment that groups together municipalities with a population of more than 100 thousand inhabitants. What are the solutions? The president of the National Council of Accountants, Elbano De Nuccio, brands the current legislation as “inadequate”. “Controls in municipalities with under 15,000 inhabitants must be strengthened, along with tools for promptly identifying situations of imbalance.”
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