Italy, San Marino DTA Clears Italian Committees
11 June 2013
Posted by: Author: Ulrika Lomas
Author: Ulrika Lomas
While the Italian Cabinet had approved the ratification of the double taxation agreement (DTA) between Italy and San Marino back in December last year, delays because of the Italian general election in February, and then in forming a new Government, meant that its ratification was only able to pass through the legislative committee stage on June 5.
Until the last Government led by Mario Monti picked up the matter, a long-running saga had seen San Marino trying to persuade Italy to go ahead with the re-negotiated DTA, which also contains a protocol for the exchange of tax information, while Italy still dragged its feet after its signature in June last year.
Within successive anti-tax evasion actions taken by Italian governments, San Marino has remained on the "black list" of countries Italy still considers to be tax havens. Due to that, for example, there have been substantial cash outflows from San Marino's banks, reducing their financial stability.
San Marino has signed DTAs or tax information exchange agreements with a number of other countries, including, most recently, Canada, South Africa, China, Vietnam and Barbados, and has been able to change its internal regulations to guarantee transparency within its economic system.
Its Government has long professed that it has, for some time, been working to reduce the evasion of Italian taxes through its territory and has irrevocably chosen the path of international tax transparency and collaboration. It is emphasized that the terms of the DTA follow the most recent internationally-agreed framework for the exchange of tax information and the overcoming of bank secrecy.
With the passage of the DTA through the necessary budgetary and foreign affairs parliamentary committees, the next stage in the ratification will be to seek the approval of both Italian houses of parliament, probably this month, before its signing by the Italian president Giorgio Napolitano. Following that, San Marino will be looking for the Italian Treasury to issue a notice removing it from the black list as soon as possible.