The EC said the exemptions were a fair way in which to boost the regularisation of the country’s economy.
Rome has offered businesses in the country’s underground economy a range of discounts in tax and social security to persuade them to establish themselves legitimately.
These range from exemptions from paying a worker’s share of social security contributions to waiving tax debts and social security obligations. There is also a special low tax replacing ordinary income tax schemes, only applicable to the increase in taxable income declared in comparison with the preceding year.
Brussels has investigating the system to see whether it broke EU state aid rules – designed to stop businesses in one member state having unfair advantages.
It concluded that as the scheme offers concessions to all businesses in Italy whose identity is not known in advance, ‘they do not introduce any systematic discrimination’.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements