A daft idea for the Italian Goverment

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February 14, 2008· Filed Under Thoughts 

How about setting up a system which allows people to make advance IVA (VAT) and tax payments and grant those who do this a reduced rate of tax and/or use the interest generated on such advance payments to cover the some of the lost income resulting from the reduced tax rates?

It’s a mad idea, I know, but it might encourage more Italian businesses to actually pay taxes. And it may help businesses plan cashflow a little better too, I think.

You would need online access to your current tax and IVA position in real time too, as this would help you understand how much you can put aside for future tax/IVA liability. However, with the wonders of technology, setting this up should be a doddle.

A nutty idea? You tell me.

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Tags: Business, do this, future, government, idea, interest, Italia, Italian, iva, payment, People, tax, technology, vat

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Comments

2 Responses to “A daft idea for the Italian Goverment”

  1. Marco said on February 15th, 2008 1:01 pm

    I agree with you, but i must admit that this hypothesis has always been opposed by italian politicians.

    They claim that:

    - it would be a taxation on savings, and not on income
    - it would be too complicated for citizens to deal with
    - it would drives people to consumerism

    The real reason IMO is that they’re afraid to lose votes from tax evaders :)

  2. AlexR said on February 15th, 2008 2:49 pm

    Marco,

    Thanks for dropping in. I’m always a bit wary of the reasons given by Italian politicians seeing as they do so little to actually improve things…

    Now to the daft reasons given by the politicians:

    “- it would be a taxation on savings, and not on income”
    - True in a way, but a reduced tax rate would offset the loss in savings income.

    “- it would be too complicated for citizens to deal with”
    - This is a joke - Italy is already overly complicated, so one more level of slight complication would not make any difference, and it should mean more money in government coffers (so the politicians can pay themselves even more;-) ) This also depends on the implementation too.

    “- it would drives people to consumerism”
    Another joke - consumerism is already rampant in Italy - Armani, Dolce e Gabbana.. do I need to continue?

    But you may well be right as to the real reason, this would be much more likely!

    All the best,

    Alex

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