The Revenue Agency returns to office. The goal is the reform ofPersonal income tax for VAT numbers, something that would go towards a simplification of taxes for millions of Italians. The Revenue Director, Ernesto Maria Ruffini, during the hearing in the House yesterday, returned to the attack on the need for focus on the cash principle to overcome the current mechanism based on balances and advances. According to him, in fact, it would be possible to use the substantial resources of the Recovery Fund in this area. Focusing on the reform of taxation for VAT numbers and on greater efforts in collection, passing through the simplification and digitization of the tax authorities.
Tax reform is one of the government’s priorities, but while the Ministry of Economy is working on a cut in taxes on labor and a reshuffle of all the benefits for the family, Ruffini goes elsewhere: “With the cash tax system, the possibility of paying taxes could be envisaged month by month based on how much you actually collect. And net of how much you spend to carry out your business, thus favoring the investments in capital goods, the costs of which could be immediately deducted from one’s income. Thus also encouraging the growth of the country “.
This measure would serve three purposes, he writes Italy Today: incentive and support for growth thanks to the deductibility of investments. Simplification of the regime of depreciation. Improvement of the compliance: cash flows would be more easily observable. The beneficiaries of the new system, for Ruffini, would be above all the small businesses in simplified accounting and natural persons under advantage and flat-rate systems, with a possible extension also to self-employed workers.
If this reform were passed, a periodic monthly or quarterly collection system would be introduced. The debit of the sums due would arrive directly on the Bank account of the taxpayer. The crediting of the refunds or the compensation of the same would rain, with the taxes due, in the first subsequent useful period. It is, therefore, one reform structural taxes which, in the face of an initial cost for the State (concentrated above all in the first year of application of the new rules, with an anticipation of the deduction of future quotas), could produce positive effects for the Treasury in subsequent years . Both for the reduction of administrative costs (linked to the simplification of formalities), and for the increase in investments that the reform would stimulate.
Finally, the pre-filled tax return could also be prepared for VAT numbers. But there are also critical issues. According to the accountants, abandoning the mechanism of two annual advances to switch to counting the advances 12 times on a monthly basis is not a simplification. The risk is to “mess up” the work of professionals who would have to prepare 12 tax returns, with the obligation to carry out the complex calculation of the amount due on a monthly or quarterly basis.