Italy To Scrutinize EUR33bn San Marino Transactions

by Ulrika Lomas, Tax-News.com, Brussels

10 August 2015

The Guardia di Finanza (GdF), Italy's financial police, has begun an investigation into more than 58,000 people who, between 2009 and 2014, entered into financial transactions between Italy and San Marino worth more than EUR33bn (USD36.2bn).

In a press release, the GdF stated that the subjects of the program (codenamed Ivory Tower) were identified following research undertaken in recent years into the illegal export of capital, into money laundering, and into tax evasion between San Marino and Italy.

The GdF's action was instituted following the "Varano" judicial investigation that began in 2008 in Forli. The initial checks made by the GdF regarded over 1,050 transactions identified by its preliminary investigations and resulted in the discovery of over EUR850m in undeclared income tax and EUR153m in undeclared value- added tax.

A further examination of these documents led the GdF to identify a total of 58,841 people – 26,953 Italians (predominantly in the Emilia Romagna and Marche regions) and 31,888 from San Marino or from other jurisdictions – who have completed financial transactions between Italy and San Marino.

The GdF confirmed that the double taxation agreement between Italy and San Marino, which entered into force in October 2013, has significantly helped its inquiries. The agreement contains the internationally agreed framework for the exchange of tax information between territories.

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