The abolition of industry studies

The recent decision of the Italian Ministry of Finance and of Sose spa to abandon industry studies is worthy of interest.
A new tool will be “set up gradually” and will be based on the “reliability” of the tax payer, allowing them to “bypass” industry studies and to stop using them as a presumptive tool for tax calculation.

The central point is a compliance indicator which provides, on a scale of 0 to 10, the degree of reliability of the tax payer: if the score is high, then there is the possibility to access a rewarding system with the following benefits:
  • No checks based on simple presumption as per articles 39, paragraph 1, letter d), second period, DPR n. 600/73 and 54, paragraph 2, last period, DPR n. 633/72;
  • One-year reduction of the period of check as per articles 43, paragraph 1, DPR n. 600/73 and 57, paragraph 1, DPR n. 633/72;
  • The possibility to have a “reduced” check as per article 38, DPR n. 600/73 (income meter) only if the actual income is 1/3 higher than stated.
  • The indicator will be calculated based on the main economic activity, with a specific forecast for each activity/group of activities. This will be calculated on the basis of a statistic and economic method considering:
  • Business norm indicators (used so far to estimate income)
  • Added value and business revenue
  • A regression model based on longer term data (8 years instead of one) with more information and more accurate estimates
  • An estimation model taking into account current cycles without the need to make post-hoc contingency corrections
  • A new method for the detection of organisation models consisting in a smaller number and a greater stability in assigning the business to its cluster.
  • The new tool has the following specific elements.
  • A synthetic reliability/compliance index representing the tax payer’s ranking (from 1 to 10) based on key indicators
  • Economic norm indicators: so far used to estimate revenues/remuneration, they become compliance/reliability indicators.

The internal revenue agency (Agenzia delle Entrate) will notify to the tax payer the result of the synthetic indicator in all its components, including those that appear inconsistent. In this way the tax payer will be stimulated to increase voluntary compliance and to start a dialogue with the internal revenue agency to increase their reliability.

It is reasonable to presume that the new rules aimed at introducing the above shall be included in the 2017 Finance lay and that they will become operative in the 2017 fiscal year. It’s also worth noting that the internal revenue agency has anticipated in its press release of 8 September 2016 that the industry study models for 2016 will have a “significantly” lower quantity of information required.