Filling in Italian Self-Assessment Tax Return Nothing to Declare !

[Michael J Murphy ACA]

Originally Posted by liketheroman

MM - thanks for your explanation

I just wondered (I would assume yes) if it applied to an Italian resident who had a second home in Italy

Yes it does. There is a 1/3 uplift on the income where the property is at the owner and/or the owner's familiy's disposal.

[Cassini]

'Before this year, 2007, the "no tax area" (personal allowance) would have covered any liability so no taxes would have gone unpaid. That said it was still an obligation to file a tax return and many people are now catching up by making a 2005 return in light of the future obligations.'

Thank you for your helpful answer. I am uncertain of the rationale of additionally making a 2005 return as quoted above, could you please explain this further.

[Relaxed]

I defer entirely to Michael on all of this, but my understanding was always that even without any tax liability a tax return was necessary.

One point which Michael referred to obliquely, and some readers may have missed, is that if you are joint owners of a holiday home you both need to make individual tax returns.

[Michael J Murphy ACA]

Originally Posted by Cassini

'Before this year, 2007, the "no tax area" (personal allowance) would have covered any liability so no taxes would have gone unpaid. That said it was still an obligation to file a tax return and many people are now catching up by making a 2005 return in light of the future obligations.'

Thank you for your helpful answer. I am uncertain of the rationale of additionally making a 2005 return as quoted above, could you please explain this further.

A large number of clients, when they realise there will be a requirement to pay taxes in the future are mindful of how it may look a little obvious that all of a sudden they are filing a return so they consider it "prudent" to prepare the ground, figurativley speak. Very British, perhaps?

Relaxed is perfectly correct in that two returns are required where the property is jointly owned.

[manopello]

I think I remember reading a post where if a house is uninhabitable it was exempt?Can anyone throw any light on this?

[Marinaw]

Can anyone say what date do we have to file these tax returns by in Italy?
Thanks

Marina

[NickZ]

Originally Posted by Michael J Murphy ACA

For Italian residents who are paying Italian taxes (or those planning to become so) there are some pretty impressive eco friendly tax credits available where you insulate roofs, or buy double glazing or install solar panels or effiecient heating systems.

If you are restoring an old house have a word with the geometra about the exact technical requirements, but as I say, it looks very attractive with 55% of the cost allowed in 1/3 chunks, against the next three tax years.

Did they get rid of the old solar credit? Or is this in addition to the Enel payback scheme? The old system actually would have been better if you had the upfront cash.

[gardahomes]

Originally Posted by Michael J Murphy ACA

A large number of clients, when they realise there will be a requirement to pay taxes in the future are mindful of how it may look a little obvious that all of a sudden they are filing a return so they consider it "prudent" to prepare the ground, figurativley speak. Very British, perhaps?

Any confusion is understandable given that two different commercialistas have told me in the past that if you are within the no tax area no return has to be filed!
What are the penalties, Michael, for failing to file a tax return where there was nothing to declare?

[Michael J Murphy ACA]

Originally Posted by gardahomes

Any confusion is understandable given that two different commercialistas have told me in the past that if you are within the no tax area no return has to be filed!
What are the penalties, Michael, for failing to file a tax return where there was nothing to declare?

Penalties are normally based upon the taxes due so where there were no taxes due then any penalty is difficult to gage. In the UK it is £100 but until someone I am working for gets a fine....not really the sort of question one asks in the tax office. Even a dozy tax inspector might latch on to that one.

Anyway this whole areas has been reformed because in the future ICI and IRPEF will be filed together. This will begin with a declaration of the ICI paid, and will culminate in a joint ICI and IRPEF declaration. And as I said above the no tax area is no longer available for non residents so there will be tax payable and thus fines payable (usually 120% to 240% of the tax not paid).

[marco mando]

Just in case it got missed, can I repeat Manoppellos question: Does anyone know if there is any exemption to the tax if the house is uninhabitable?

Thanks,
Marco Mando