Facilitated installment payment
The Budget Law provides for the possibility of facilitated settlement of notices of the results of automated control of returns for which, as of January 1, 2023, installment payments are regularly in progress. To facilitate taxpayers in determining the remaining amount of remittance notices to be paid, the AE has prepared a calculation sheet.
Ongoing installment payments as of January 1, 2023 are defined as installment payments regularly undertaken in previous years (regardless of the tax period), for which, as of the same date, no cause for forfeiture has occurred.
In detail, the Budget Law 2023) provides for the possibility of facilitated definition of notices of the results of automated control of declarations (Art. 36-bis Presidential Decree 600/73 and Art. 54-bis Presidential Decree 633/72) for which, as of January 1, 2023, installment payments are regularly underway.
To make it easier for taxpayers, a special spreadsheet for determining the remaining amount to be paid in reduced penalties according to the provisions of the favorable rule is available on the website of the Internal Revenue Service. The relief consists in the reduction of the penalties due, which are recalculated to an amount equal to 3 percent of the tax (unpaid or paid late) that remains after taking into account installment payments made until December 31, 2022. For installment payments, the tax code is 9001.
- be made in a lump sum;
- be fractioned on the basis of the due dates stipulated in the originally defined installment plan.
Please note that it is possible to extend installment plans originally set on a lower number of installments up to a maximum of 20 quarterly installments.
Accrual interest must be recalculated against the reduced amount of the remaining installments, applying the annual rate of 3.5 percent, from the first day of the second month following the month in which the notice is processed until the date of payment of each installment. For installment interest, the tax code is 9002.
Budget Law 2023 provides for the scrapping of roles for debts resulting from individual loads entrusted to collection agents from January 1, 2000 to June 30, 2022 without paying the amounts registered by way of interest and penalties, interest on arrears, any penalties and additional amounts, as well as the amounts accrued by way of premium. The scope of application covers:
- loads entrusted to collection agents from January 1, 2000 to June 30, 2022, unless expressly excluded by law;
- definable loads in relation to which there are pending litigations, subject to the simultaneous commitment to the waiver thereof;
- definable loads in relation to which there are pending:
- over-indebtedness procedures, with the possibility of payment of the debt, even falcidized, in the manner and timing provided in the decree of approval;
- bankruptcy procedures as well as all procedures for the negotiated settlement of the business crisis, with application of the discipline of predeductible credits;
- loads entrusted to collection agents from January 1, 2000 to June 30, 2017, already subject to previous scrapping, even if lapsed.
Loads entrusted 1.01.2000-30.06.2022
The debts are those resulting from the loads entrusted to the collection agent during the period from January 1, 2000 to June 30, 2022, and only the amounts due as principal and those accrued as reimbursement of expenses for any enforcement procedures and notification fees are due. Not due are:
- interest entered on the register;
- interest on arrears;
For loads relating to penalties for violations of the Highway Code, as well as other administrative penalties (other than those imposed for tax violations or violations of obligations relating to contributions and premiums due to social security institutions), only amounts due by way of interest including “surcharges,” those for late payment and installment, as well as amounts due by way of surcharge are not due.
Relevant are loads entrusted from January 1, 2000 to June 30, 2022 including those:
- contained in files not yet served;
- affected by installment or suspension measures;
- already the subject of a previous “Rottamazione” even if forfeited due to non-payment, late, insufficient payment of one of the installments of the relevant previous payment plan.
- loads entrusted by private-law social security funds/institutions are covered by “Rottamazione-quater” only if the institution, by January 31, 2023, takes steps to:
- adopt a specific measure;
- transmit it, also by the same date, to Agenzia delle entrate-Risciscione;
- publish it on its website.
Charges not covered by the Facilitated Definition
Not covered by the Facilitated Definition (“Rottamazione-quater”):
- the loads entrusted to the Collection Agent before January 1, 2000 and after June 30, 2022;
- the loads related to:
- sums due by way of state aid recovery;
- debts arising from convictions by the Court of Auditors;
- fines, penalties and fines due as a result of criminal convictions and sentences;
- “traditional own resources” of the European Union and Value Added Tax collected on importation.
- the amounts entrusted by local and/or territorial tax authorities for collection by means of payment notices (so-called GIAs);
- the loads entrusted by private-law social security funds/bodies that have not provided, by January 31, 2023, for the adoption of a specific measure aimed at including the same loads in the scope of application of the facilitative measure.
Application for membership
To adhere to the “Rottamazione-quater” the taxpayer must submit electronically, by April 30, 2023, a special declaration of adhesion, in two alternative ways:
- in the reserved area, with SPID, CIE and National Services Card credentials, indicating the folders/notices for which one intends to benefit from the measures introduced by the Facilitated Definition;
- in the public area by filling out a special form in its entirety and attaching the identification documentation. It will be necessary to specify the e-mail address, in order to obtain the receipt of the application.
- in response to the application, the Agenzia delle Entrate-Riscossione will send the taxpayer, by June 30, 2023, a “Notice” of:
- acceptance of the application, containing:
- the total amount of the amounts due under the Facilitated Definition (“Rottamazione-quater”);
- the payment due date based on the installment solution indicated when submitting the application;
- the pre-filled payment forms;
- the information for requesting the possible domiciliation of payments on one’s current account;
- denial (if any), with evidence of the reasons why the request for Facilitated Definition was not accepted.
Payment of the amount due
Amounts due for membership may be paid:
- in one lump sum, by July 31, 2023;
- in up to 18 consecutive installments (5 years), the first two of which are due on July 31 and November 30, 2023. The remaining 16 installments, spread over the next four years, are to be paid by Feb. 28, May 31, July 31, and Nov. 30 of each year starting in 2024. The first and second installments will be equal to 10 percent of the total amounts due under the Facilitated Definition, while the remaining installments will be, between them, of equal amounts. The installment payment provides for the application of interest at the rate of 2 percent per year, effective August 1, 2023.
The choice of the number of installments is to be communicated in the application, and payments are to be made according to the due dates shown on the “Notice of Amounts Due” that Agenzia delle Entrate-Riscossione will send by June 30, 2023.
Effects of adhesion
Following the submission of the application for adhesion, Agenzia delle Entrate-Riscossione, limited to debts falling within the scope (“definable” debts) of the Facilitated Definition (“Rottamazione-quater”)
- will not initiate new precautionary or executive procedures;
- will not continue executive procedures previously initiated unless the first successful auction has already taken place;
- will remain in place any administrative attachments or mortgages, already registered on the date of submission of the application;
However, in the application to join the Facilitated Definition (“Rottamazione-quater”), it is necessary to indicate the waiver of any litigation related to the folders indicated in the same application.
Having submitted the application, payment obligations arising from previous installments are suspended until the due date of the first or single installment (July 31, 2023) of the amounts due under the Facilitated Definition: similarly, current installments relating to debts for which the “Rottamazione-quater” has been accepted are revoked. On the contrary, if the application is not accepted, the payment of installments of the installment plan may be resumed instead.
Connections “balance and cancellation” and “Rottamazione-quater”
The amounts to be paid under “Rottamazione-quater,” reported in the “Notice” that Agenzia delle Entrate-Riscossione will send by June 30, 2023, will already take into account the cancellation determined by the “Write-off” of debts up to 1,000 euros that will be made on March 31, 2023.
Law 197/2022 does not preclude the possibility of accessing the “Rottamazione-quater” even for debts already included in previous “Scrappage”: in this case, the “Communication” that the Agenzia delle Entrate-Riscossione will send by June 30, 2023, will already take into account the amounts that will be cancelled in the meantime as a result of the “Scrapping” of debts up to one thousand euros that will be carried out on March 31, 2023.
Check debt situation
It is possible to consult the overall situation of one’s folders/warnings in the restricted area of the Agenzia delle Entrate-Riscossione website by accessing the “Debt situation – consult and pay” service. You can also get information and request the debt situation from the public area of the site, using the service “Send an e-mail to the Taxpayer Service.”
The definition of pending disputes
The procedure allows you to define pending disputes in which the Internal Revenue Agency or the Customs and Monopolies Agency is a party. To gain access, it is necessary to operate through the submission of a special application by June 30, 2023 and the payment of the relevant amount equal to the value of the dispute.
The rule provides for the general hypothesis of a pending dispute definable by paying the full value (100 percent of the higher taxes) and a number of exceptions depending on whether the administration lost the case in the last judgment and the status of the proceedings. The cost varies depending on the degree and outcome of the judgment.
Disputes attributed to the tax jurisdiction in which the Internal Revenue Service is a party, pending at any stage and level of the judgment on the date of the law’s entry into force, may be settled by payment of an amount equal to the value of the dispute, with reductions varying depending on whether the administration loses the case during the judicial process, specifically as follows:
- 90% of the value if the appeal is pending in the 1st instance;
- 40% of the value if the E.A. is unsuccessful in the 1st instance;
- 15% of the value if the A.E. is unsuccessful in the 2nd instance;
- 5% of the value in the event that A.E. is unsuccessful in both instances (if the appeal is pending in the Supreme Court).
Judgments concerning: i) EU traditional own resources; ii) sums due for recovery of state aid are excluded.
The definition is finalized with the submission of the application and payment of the 1st or single installment by 06/30/2023 (deferment in 20 quarterly installments of equal amount is allowed, but no offsetting in F24). Any denial of the definition may be made by 07/31/2024.
Facilitated conciliation of tax disputes
As an alternative to the definition specified above, disputes pending before the Courts of First and Second Instance in which the Revenue Agency is a party, concerning tax acts, may be resolved with a conciliatory agreement by June 30, 2023, benefiting from the reduction of penalties to one eighteenth of the minimum.
Amounts due must be paid within twenty days after signing the agreement, being able to installment in up to twenty equal quarterly installments, plus legal interest.
Failure to pay the entire amount or an installment, including the first, by the due date of the next installment shall result in forfeiture of the benefit, and the remaining amounts shall be entered on the docket, with application of the ordinary penalty increased by half.
Facilitated waiver of disputes in the Supreme Court.
Similarly, as an alternative to the specified definition, in relation to disputes pending before the Court of Cassation in which the Internal Revenue Service is a party, concerning tax acts, they may be extinguished, with the benefit of penalties reduced to one eighteenth of the minimum, by waiving by June 30, 2023 the main or incidental appeal, following the intervening settlement of all claims.
The procedure is finalized by signing the agreement and paying everything due within the next 20 days.
The firm remains available for any further clarification.