Starting from Financial Year 2012, Italian residents can be fined € 10,000.00 or more if they fail to report ownership of foreign assets such as: bank accounts, investments, pension funds and properties.
Regardless of your citizenship, if you are resident you must disclose your assets held abroad.

The good news is that Accounting Bolla can help you out. Read the full article and discover how.

Which assets have to be disclosed?

According to the Italian legislation the ownership of the following assets must be disclosed:

• Bank accounts;
• Pension funds;
• Equity investments in foreign companies
• Investments in government and corporate bonds;
• Stock options;
• Foreign currency contracts;
• Derivative contracts;
• Unit trusts, funds and certain types of with-profit insurance contracts;
• Land and properties;
• Precious metals;
• Artwork;
• Registered yachts and boats.

Many assets only require a disclosure to the Italian tax authorities whit no tax due.

When is the deadline?

October 31st 2018 is the deadline; a further extension of 90 days is available upon paying a reduced fine amounting € 25.00.
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No late filing is permitted! Once the deadline has passed there is no way to file, thus heavy fines apply.

What happens if I don't file?

Failure to disclose the foreign held activities will expose the taxpayer to the following fines:
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• A general fine ranging € 258.00 to € 1,000.00 for not disclosing.
• 3% -15% of the asset consistency at the year end if held in a white-listed country
• 6% -30% of the asset consistency at the year end if held in a black-listed country
• 120%-240% of any tax due

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These fines apply to every tax year, on top of any tax due.
It is very easy to get caught because Tax agencies and bank institutions worldwide are committed to mutually exchange such type of information.

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Let's say you have a UK pension fund worth € 300,000.00

​Failure to file, will expose the taxpayer to a minimum fine of € 9,000.00 up to € 45,000.00​ per year.
On top of that, failure to disclose foreign assets can be considered a felony in some circumstances.

Do you still think you should not disclose your foreign assets?

What if I already paid taxes on my foreign assets?

If you paid taxes in the foreign country for such assets you need to keep the receipt and claim the taxes paid as a credit.
​You will not pay taxes twice on the same asset.

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ALL YOU HAVE TO DO IS FILE!

Call, email, or book an appointment to get more information. Communication will be protected by attorney-client privilege.

​Regardless of your location, everything can be completed entirely online.

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Nicolò Bolla
PRINCIPAL

​MBA - ACCA - Dottore Commercialista

Member: Italian Association of International Accountants
Registered: HMRC - Agenzia delle Entrate
Alumnus: Troy University

Parma Office
by appointment
+39 338 6002380

Borgo Carissimi 1
43121 Parma

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