Italy prepares a far-reaching tax reform. This reform comprises, i.a., the introduction of elements of a flat tax, a re-examination of the so-called “tax expenditures" and a cut of their number, a more coherent taxation of capital gains, closer adaption of the Italian VAT provisions to EU norms, and in particular the introduction of many new instruments to assure tax compliance. The aim is to motivate the taxpayers to pay voluntarily and not because of the threat of sanctions that can be rather high in Italy.
