Pursuant to the decree of July 20, 2023, issued by the Italian Ministry of Economy and Finance, Switzerland is no more included in the Italian Black List concerning individuals, for tax purposes, laid down under Ministerial Decree 4th May 1999 (“Black List”).
The inclusion of a country in the Black List was originally based on certain criteria set by the OECD (Organisation for Economic Co-operation and Development) in 1998 including significant absence of corporate income taxes and the lack of an effective mechanism for exchanging tax information.
The consequences of the removal of Switzerland from the Black list are as follows:
- Firstly, in case of transfer of residence from Italy to Switzerland, it will no more apply the rebuttable presumption according to which the taxpayer who moves to a Black listed country is still deemed as Italian resident for tax purposes. In other words, the burden of proof as for the non-effectiveness of the transfer will be on the Italian tax administration in the first place.
- Secondly, in case of assets held in Switzerland, it will no more apply the provision according to which there the sanctions for the omittance of the reporting of any foreign asset held in Black listed country and the statute of limitations are doubled. Therefore, the ordinary 90/110% sanction and the ordinary five year deadline (as from the filing of the declaration) will apply.
- Thirdly, in the same hypothesis, it will no more apply the rebuttable presumption according to which in case the entire value of non-disclosed asset held in Black listed country is classified as non-taxed income (unless the taxpayer proves differently).
Obviously, the aforementioned provisions will still be effective as for the other countries still contemplated by the Black List.
The aforementioned amendment will be effective as from the fiscal year 2024.