Italy, Corte dei Conti: “ Web evasion, the State doesn’t make it”

Jun 11, 2018 10:49 am

Digital elusion phenomenon receding. Declaration of impotence by the accounting magistrate.

Tax evasion and avoidance of the digital economy are phenomena that escape the usual measurement and control systems. This is why they require the adoption of ad hoc tools “typical of criminal investigations”.

According to the Court of Auditors, in the report on “E-commerce and the tax system” the need for “a broad reformulation of the legislation” was noted. In fact, digital companies are able to carry on their business “regardless of the presence of a permanent organization in a country, maintaining relations with consumers and users through websites or other digital tools”.

Moreover, “even when such enterprises establish a permanent organization in a jurisdiction, the opportunities offered by technology facilitate the adoption of suitable structures to minimize the taxable presence in a country, through an allocation of functions, risks and activities that does not reflect the economic substance of the operations carried out “.

Hence the need for a more specific offensive that has to start from the mapping of the phenomenon, up to the adoption of more effective tools for data management penetration, with a close collaboration between the Inland Revenue and the Guardia di Finanza in Italy and between supranational bodies at the global level.

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