Italy studies tax amnesty on undeclared assets abroad, paper says

MILAN (Reuters) -Italy is considering an amnesty for taxpayers with undeclared assets held abroad similar to a temporary measure introduced in 2014, the Corriere della Sera daily reported on Thursday, citing people involved in the matter.

According to the paper, tax dodgers who voluntarily declare funds kept abroad would be safe from criminal charges or fines but would have to pay any tax owed to the authorities from at least the last five years.

In response, the economy ministry said in a statement late on Thursday that there would be no room for any amnesty on “criminal” tax behaviour in the budget for next year, which is expected to be approved by the cabinet on Monday.

The package will then be forwarded to the two houses of parliament, which can amend its contents before final approval in December.

Corriere della Sera said the fiscal impact of the mooted tax amnesty was difficult to estimate.

Italy has long suffered from rampant tax evasion and successive governments have pledged crackdowns, but also offered concessions to tax cheats, allowing them to settle disputes through payment of limited sums in a bid to raise revenue quickly and easily.

(Reporting by Agnieszka Flak, additional reporting by Giselda Vagnoni and Alvise Armellini; editing by Barbara Lewis and Gavin Jones)