2. Cooperative Compliance Italy
Institute for Austrian and International Tax Law
Giammarco Cottani
Ludovici & Partners
Vienna, February 10, 2016

3. Cooperative Compliance Programme - Launch (25 June 2013)
On 25 June 2013 Italian Revenue Agency («IRA») launched a pilot project on cooperative compliance programme for large business taxpayers («LBT»).
The pilot project is consistent with the OECD recommendations.

4. Cooperative Compliance Programme - Scope
The scope of the pilot project in Italy was to identify the main features of a new form of relationship between LBT and the IRA.
The pilot project aimed at implementing ex-ante approach rather than traditional ex-post approaches.

5. Cooperative Compliance – Benefits for Taxpayers
Advance certainty and predictability;
Improved tax risk management;
Relaxed audits;
Improved relationship with the tax administration;
Cost reduction; and
Reputational gains.

6. Cooperative Compliance – Benefits for Tax Administration
Better understanding of taxpayer business;
Increased certainty and transparency;
Efficient use of limited audit resources by:
Focusing on high tax risk cases, and
Reducing the scope of audits performed;
Minimisation of the number of litigated cases.

7. Cooperative Compliance Programme – Requirements
Number of participants in the pilot project was limited.
IRA reserved the right to select the applications.
The IRA published the mandatory and optional requirements.

8. Mandatory Requirements
Mandatory requirements are:
The taxpayer should be qualified as LBT i.e total turnover or operating revenues not less than €100 million with reference to the tax year 2011; and
Having implemented specific organisational model (Sec. 6, Decree no. 231/2001) or having adopted «Tax Control Framework» to manage tax risks.

9. Optional Requirements
Belonging to an MNE group or carrying out activities in Italy or abroad through a PE;
Having adopted similar cooperative compliance programs in foreign jurisdictions or having subscribed to a code of conduct with other tax administrations;
Having already entered into initiatives falling under the concept of cooperative compliance in Italy e.g. such as International Tax Ruling or having adopted a transfer pricing documentation requirements regime.

10. Filing of the Applications
The application project should have included the following:
A description of the mentioned mandatory and optional requirements;
A brief explanation of the motivations for being admitted to the pilot project;
A brief description of the Tax Control Framework adopted, if any;
The references (phone number and the address) of the relevan person to be contacted by the IRA.

11. Sources – the IRA and OECD
The information on the pilot project can be found on the following web-page:
The information on the OECD recommendations can be found on the following web-page:

12. Thank You!