Functional and Efficient IT are the precondition for the digital fight against tax evasion

On the sideboard stands a dinosaur. Small, paper-based prophylaxes, to put it more precisely: crafted out-of-print forms to pay for the radio fees. Government has digitized the fee collection in Italy and made sure that every Italian makes his contribution to television and radio. The often forgotten payment at the post office counter-history since then. Already in state office, another caliber might find a place of honor, a T-Rex or Brontosaurus perhaps. Compared to the Italian GEZ, his current project is a whole lot bigger:

Precondition for the Digital Fight Against Tax Evasion

Losses due to rampant sales tax fraud

A government commission estimates the losses to more than 35 billion euros annually due to rampant sales tax fraud. The ambitious project was set up with the blessing of the EU Commission. If the sample succeeds in Italy, other EU member states could soon follow.

Then would further tax authorities fraud tax fraud, which the Commission across Europe to € 147 billion, fight more effectively than fight. And indeed: The hunt is running in Italy so well that Savini on his PC always likes the first results, which come in real time with him.

Tax evasion is almost a good thing, the mafia is still deeply rooted in many parts of the country. The headquarters of the Agenzia is located in the south of Rome, where some 3,000 civil servants work.

Government bases his serenity on a tool called E-Invoice, an electronic invoice for all business transactions. Sounds harmless. But it is a revolution.

An estimated two billion bills are issued annually by Italian companies. Many of them were fake until then - and the business partners were able to reimburse the (never paid) value added tax from the Treasury.

Savings authority acts as a sort of clearinghouse. All companies now send their invoices electronically as a file to the Financial Authority, which checks them for errors, discrepancies, and suspicious facts, and then forwards them to the invoice recipients.

Everything runs automatically and in seconds, thanks to high performance computers and sophisticated algorithms. If the new digital bill does not run through the Agenziadelle Entreat, the Treasury does not pay the recipient any input tax.

The Mafia is to Blame:

The EU Commission and the other Member States strongly criticize its loose budget policy and are considering a formal deficit procedure. The country is considered a playground for tax evaders and is not exactly known for a modern administration. Italy should show the continent the way to an honest, efficient, digital tax future.

 At € 110 billion a year, the Italians estimate the total amount of tax evasion. The pressure is particularly large because of the bad tax morale, organized criminality, and the state budget money in Italy.

The fight against the VAT fraudsters could give the right-wing populist government some breathing room. The government has budgeted two billion euros in additional state revenues for 2019; she expects five to six billion.

 In fact, after a promising start in the first few months, it could become even more. Maybe even a double-digit billion amount is possible - because every VAT tax more makes the income of the companies more visible - and thus an estimated two more income tax Euronach pulls.

The most important hunting tool of the Italian Financial Administration is digitization. It makes the area-wide electronic accounting and its firm secured data center of Sogei, the state-owned Italian IT company, also rests the digital real estate register of the country.

In Italy, a property may only be transferred, sold or inherited if it is electronically recorded, the Owners and buyers are known and the change is digitally confirmed.

The Central File in Rome is an important pillar in the fight against money launderers - and one reason why the mafia increasingly evades to North. There, where it is more analogous and laxer.

In some EU Member States the land registries are secretive, decentralized and still full of hanging file registries. Ideal for dodgy characters and organizations to invest large amounts of money in the land. Some EU Member States' real estate sector is at least ten percent contaminated with dirty money.

Helpless Confederation :

Although the Federal Government has been endeavoring for six years to set up a nationwide electronic real estate register. The technical introduction of the database is a matter for the federal states, and the real estate register is expected to be available from 2020 for introduction in the federal states.

Fatturazione Elettronica against the VAT collector is only the beginning. From the beginning of 2020, all shops, trattorias, and caf├ęs in Italy will need to have e-cashes that will report each bill in real-time.

From this year on, the Romanian tax authorities will also be closely scrutinizing potential tax offenders. In a kind of electronic dragnet, where electronically recorded sales indicate a higher income than indicated. The main target groups are freelancers and individual entrepreneurs.

They alone seek out € 33 billion in income tax annually, a government commission estimates. Lawyers, architects, and merchants should "first of all receive a friendly letter," Savini says, thus getting the chance to declare inconsistencies, voluntarily and free of penalties to correct their income tax return.

Data Bunkers:

In this football-field-sized bunker, which most Italians only know from hearsay, the state collects the data of its citizens from birth on. For a good five months now, all e-bills have also been received, being chased through the computers and forwarded to the recipients after an automatic check. Only insolvency or death can free the Italians from the clutches of this fiscal super cloud.

Because of the federal fragmentation in some EU Member States, the authorities are conducting an almost hopeless fight against money launderers and tax evaders - they can only dream of Italian conditions.Italy is central and tightly organized. The trade unionist misses in this country the equivalent of a federal tax administration.

EU Member States company is the world market leader for screws, dowels and other fastening products and has a strong market position in Italy. Behind the administration building runs the Kreitner saddle, also known as Kojoten Pass, right next to it rose the rose garden massif, on the left in the background snow-covered three-thousands. A South Tyrolean postcard idyll.

In the old times when the transition from classic paper accounting to e-invoicing was imminent. IT outages would have been devastating to the business.

Pilgrims to Rome

The suppliers have to send their invoices directly to the headquarters in Neumarkt in South Tyrol. No copying, no forwarding, enrollment, filing, and filing. The interest in other countries should be correspondingly high so that the electronic invoicing system will be introduced to them after the successful trial run.

EU Member States can now quickly introduce itself to an e-Invoice system for all to make the VAT system less prone to fraud. Above all sales tax carousel business, the federal and state project group wanted to fight for big dams where organized criminals could shift products or even services such as CO2 certificates across national borders only on paper, and allow input tax to be undone.

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