Rome, Dec 30 (Inditop.com/AKI) The Italian government’s tax amnesty scheme has netted a record 95 billion euros from funds and assets held abroad, Economy Minister Giulio Tremonti has said.
The controversial three-month amnesty was due to expire Dec 15 but has been extended until the end of April, due to a late rush of applicants who were offered generous terms and anonymity.
“These numbers indicate an extraordinary success. They are a sign of the strength of our economy and of confidence in Italy,” Tremonti said in a statement Tuesday.
“Squirrelling away money in tax havens is no longer worth it – in economic or tax terms. The earnings are minimal and are at maximum risk,” the statement added.
The 95 billion euros in tax revenue amounted to six percent of Italy’s gross domestic product, Tremonti said. The funds will provide a welcome boost for Italy’s cash-strapped treasury.
Italians who take advantage of the current tax amnesty are required to pay a five percent levy on previously undeclared funds – a relatively modest amount compared to European norms.
The amnesty could net a further 30 billion euros before it expires in April, according to estimates from the banking sector.
Tremonti said the Italian crackdown was taking place amid a global crackdown by the US and other leading nations.
The Bank of Italy has estimated that Italians hold 500 billion euros in undeclared funds abroad.
Tremonti has defended the amnesty as “ethnical” despite criticism from anti-mafia prosecutors and opposition politicians over its anti-money laundering provisions as well as the anonymity provision. Italy is the only country to offer this.
A 2002-03 amnesty granted by Prime Minister Silvio Berlusconi’s previous government on funds and assets held abroad uncovered 78 billion euros.
