The Italian tax administration will be accepting applications until 31 July 2013 for their new Co-operative Compliance program. The OECD Framework for Co-operative Compliance, as summarized in my posting of 13 June 2013, is intended to bring certainty into the tax filing and controversy process while developing a win-win relationship.
Mutual cooperation and transparency are the keys to success for this new initiative.
Mandatory requirements
- being qualified as a “Large Taxpayer” (under the section 27, paragraph 10, of decree-law no. 185/2008, as converted by section 1 of law no. 2/2009), i.e. taxpayers with total turnover or operating revenues not less than 100 million/€, with reference to the tax year 2011;
- having implemented an organizational model pursuant to section 6 of legislative Decree no. 231/2001 or having adopted a “Tax Control Framework” to manage tax risks
Optional requirements
- belonging to a multinational group of companies, or to carry out its business activity in Italy or abroad through permanent establishments;
- having adopted similar cooperative compliance programmes in foreign jurisdictions or having subscribed a code of conduct with other tax administrations;
- having already entered into initiatives falling within the concept of cooperative compliance in Italy, such as the International Tax Ruling (provided for by section 8 of decree-law no. 269 of 30 September 2003, converted with amendments into law no. 326 of 24 November 2003 and implemented with Regulation of the Director of the Revenue Agency of 23 July 2004) or having adopted the transfer pricing documentation requirements regime.
Note the importance of having established a Tax Control Framework to manage tax risks, a mandatory requirement for this program.
Strategizing Multinational Tax Risks 
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