700 million revenue procrastination

This is the largest Italian tax system that has not been completed (its revision is pending): The Web tax Approved by the end of 2018, but more than two years ago Government The deadline for the first payment, which was set for February 16, had to be postponed again to one month ahead of March 31 in relation to the relative announcement.

Postponement, unlike other measures of the same kind, does not depend decisively on a health emergency, but rather it is the inevitable result of something affected to some extent: born out of a desire to make a profit, the web giants, the digital services tax – in the Italian version – are poorly designed and difficult to enforce. The paradox of hitting Italian companies that have been crippled by competition from American giants.

In fact, the attempt to impose some form of tax on these multinationals has already begun. OECD, an international organization involved in global tax cooperation and other matters, has been working on the project for years: the goal is to identify the profits made by companies such as Google, Facebook Yet others in countries where they do not have a physical presence (or in any case very limited). For example, advertising revenue comes from Italian or French consumers, but is handled remotely using digital tools without the need for specialized offices or institutions on the site, so that associated profits cannot be taxed by the governments of those states because they are diverted to others. Territories (United States or Ireland, for example, which attracted European branches of these companies).

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Therefore, it would be a question of connecting these economic currents in the most accurate way possible with different geographical realities. However, discussions at the OECD level have been slowing down due to strong opposition from the US. Europe later tried to establish its own tax, but even this route has not yet been completed, so some countries, including France and Italy, have moved on their own and reserved the right to raise new taxes once global taxes have been lifted.

Revenue Levy

In this regard, the levy should operate on revenue affecting 3% of the companies announcing 750 million globally (to surpass exactly the above node), of which 5.5% are from digital services created in Italy. With regard to the application procedures, the Inland Revenue prepared a draft system and submitted it to a public consultation which ended on 31st December last. The time for any adjustment would have been too tight anyway. Observations received by Inland Revenue also point to how current laws literally penalize national companies: instead of helping to compete on equal terms, double taxation may be levied.
The state expects revenue from web tax to reach $ 708 million by 2020: the minimum revenue intended to decline.

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