The trade unions CGIL Rimini and CSdL San Marino intervene on the complaints from the Revenue Agency to former cross-border commuter pensioners: CGIL Rimini and CSdL sponsor the appeals for their members in a matter, that of double taxation, which remains intricate. The disputed suspension of the collection of tax bills had opened a window of opportunity for former cross-border workers (see news) now the issue of tax returns arises again.
The Revenue Agency has delivered to some former cross-border pensioners in San Marino who had turned to the CAAF-CGIL of Rimini for the service relating to the tax return – the two acronyms announced in a joint intervention – the dispute concerning the failure to recognize the tax credit relating to the taxes withheld by the San Marino tax authorities on pensions paid by the ISS. The interpretation of the Convention between the Italian Republic and the Republic of San Marino is diametrically opposed. The Emilia-Romagna Revenue Agency claims that taxes should be paid exclusively in Italy, while the Titano Administration claims that they should be withheld exclusively at source.
For years, given the different interpretation of the two States, still unresolved, most pensioners have also paid taxes in Italy, deducting those withheld by the ISS. This was the method that the CAAF adopted on a transitory basis, waiting for the dispute to be clarified. Now 10 years after the entry into force of the Convention, these citizens have found themselves with the tax ax between their heads and their necks.
CGIL Rimini and CSdL supported the position taken by the CSIR San Marino, Emilia-Romagna and Marche, which considers the ITA – RSM Convention to be part of those agreements against double taxation which provide for exclusive taxation in the country in which the pension is paid. Everything revolves around the definition of “pensions received under social security legislation”, which according to the Revenue Agency concerns only some types of pensions, such as those for disability and accident.
The Court of Cassation, although faced with appeals relating to agreements signed by Italy with other countries, has instead established that the term in question must be understood with reference to all pensions paid on the basis of a compulsory contribution, as also happens in San Marino. Furthermore, in a recent ordinance, the ITA – RSM Convention is taken as a reference as an example of agreements for which taxation is the responsibility of only the country of supply.
Dr. Maurizio Bonazzi, as Head of Tax Assistance of the CAAF CGIL Emilia-Romagna, is of the same opinion, which is why we have decided to jointly sponsor the appeals of our historical members, up to the Court of Cassation, if necessary. The first intervention was the opposition to the good-natured notices sent by the Revenue Agency, which instead reconfirmed its theses, as expected. In this second phase of protection, we have taken legal action against the Revenue Agency and are waiting for the competent Tax Court of Justice to give its opinion. Even though the road is long and does not guarantee the desired result, we believe that it must be followed to the end to reach a pronouncement from the Judicial Authority on tax matters. The regret remains that the task of resolving disputes of this nature would fall to the two Governments, who instead are culpably silent.
