Russia and Italy won’t have tax secret any more

12.04.2012

The president of Russia at the beginning of April 2012 signed the Federal law «About ratification of the Protocol on modification of the Convention between the Government of the Russian Federation and the Government of the Italian Republic about double taxation avoidance concerning taxes on the income and the capital and evasion prevention from the taxation since April 9, 1996».

The document ratifies the protocol on modification of the convention between the governments of the Russian Federation and Italy about double taxation avoidance concerning taxes on the income and the capital and evasion prevention from the taxation since April 9, 1996, signed in Lechche on June 13, 2009.

This protocol corrects some provisions of the convention in connection with cancellation in Italy local income tax and a tax on a property of the enterprises and introduction of a regional tax on a production activity.

The most important in this document is a regulation of Art. 27 of the Convention, concerning the exchange of information. This norm says that when one contracting state requests information, another one uses available possibilities for its gathering even if at present it doesn't need such data for own tax needs. 

Expert’s opinion

«Extremely important and correct norm is fixed in the agreement! This norm is « … uses available possibilities for its gathering... »!!!

It means not only «all available possibilities», but that possibilities which are available.

And how did the situation that exists early change??!

The Italian carabineers effectively overcame the Sicilian mafia, but here fight against tax crimes left a phase of unpromising opposition of taxpayers against the state and caused quite constructive cancellation of unnecessary taxes.

It is not necessary to expect that Italians will do everything to investigate inquiries of Russian impartial tax specialists. And especially to worry about inquiries of Italians to Russia.

Though the fact of acceptance of additions to the convention pleases, for officers of state can declare with pride that money, paid by taxpayers, they spend not only for trips to Italy, but also on fight against evasion from payment of taxes».

On the basis: http://kremlin.ru

Lomakin Yaroslav ( managing partner of Honest & Bright )