Federpneus appeals to Government for VAT anti-evasion laws
The Government is demonstrating that it is particularly committed to fighting evasion. Federpneus (the Italian Tyre Specialists’ Association) is hoping for the successful outcome of a battle that it has been fighting for years: a regulation that puts an end to the phenomenon of avoiding VAT on the sales of tyres.
As in all cases of tax evasion, not paying VAT on tyres not only damages the inland revenue but also honest tax payers who have to cope with unfair competition by those who do not pay their taxes. It is precisely to defend its members from unfair competition by “unscrupulous” operators that Federpneus has requested that paragraphs 2 and 3 of article 60bis of Presidential Decree 633 of 26 October 1972 should also include the tyre sector. These laws provide for the joint responsibility of vendors and buyers for the payment of VAT, but only in those sectors that are considered to be at greater risk of evasion. For many years Federpneus has requested the inclusion of tyres among the sectors subject to the anti-evasion law.
After parliamentary initiatives were unsuccessful, on 22 January 2009 Federpneus officially presented the problem to the Minister for the Economy but did not receive a response. A subsequent request on 4 October 2010 was finally answered by the Ministry in a note dated 3 December 2010. It did not resolve the question, but stated: “In this regard the undersigned points out that the proposal is being politically evaluated and also that in order take any anti-fraud measures the relevant Inland Revenue Agency (to which a copy of this letter has been sent) must first verify that the evasion phenomenon has spread to the sale of tyres to the extent that would justify the request for regulation”.
Assuming that the political evaluation was in favour of including the sector in an anti-fraud measure also to protect honest operators, Federpneus believed that the problem would be resolved within in a reasonable timescale. However, a year had passed since the reply from the Ministry and still nothing had been done, therefore Federpneus re-presented the problem in its letter of 22 December 2011 to the current Minister for the Economy and Finance, Sen. Mario Monti. It is to be hoped that a solution to this Kafkaesque situation is finally close at hand. Besides, Federpneus emphasized, “the implementation of the requested anti-evasion law does not imply new obligations either on the part of the Inland Revenue Agency or of honest operators, but could contribute to rebalancing the State’s accounts which is an inescapable priority for the country”.