# Redditometro



## Bartolus (Sep 14, 2011)

In a presentation to a number of trade unions associations recently, the Agenzia delle Entrate (Italian Revenue Agency) announced that it will be running its new redditometro software on a trial basis starting from November 2011. Simply put, the redditometro is a yardstick used to calculate a person’s income tax.

Full operation of this software, which will apply to tax returns from 2009, is expected to commence in 2012. This new measure has over 100 expenditure categories spread over 11 different groups according to the composition of families and geographical location. One of the objectives is to check for consistency between declared income and expenditure. 

The trial will use data from specific cases (the Agency guaranteeing anonymity of information collected from participants) and the software will be made available via the Agenzia delle Entrate’s web site, where provisions to collect feedback have also been made.

In essence these measures form part of an overall strategy to clamp down on tax evasion and money laundering. Other important facets to consider include 1) the limitations placed on the use of cash payments and with the introduction of Decreto legge n. 138 13 August 2011 the threshold has now been reduced to 2,500 euro. This means for example, that if you wish to donate a sum of money to a relative, or pay a bill above this amount, you cannot use cash but you must pay by cheque or bank transfer.

And 2) DL 78/2010 in force from 1 July 2011 which monitors all expenses greater than 3,600 euro (includingVAT) involving purchases of goods and services and obliges retailers and service providers to forward details of the transaction to the Agency.

If you want to know how these new measures may affect you and your tax obligations, or if you need assistance in dealing with Agency compliancy checks, please let me know.


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