The Revenue Agency in Italy has integrated advanced digital tools, including big data analysis and artificial intelligence (AI) algorithms, into its tax evasion risk assessment processes. This initiative aims to enhance the reliability of taxpayer evaluations while strictly adhering to privacy and confidentiality standards.
Tax audits using artificial intelligence in Italy
Public
Italy
Author: Nikolina Basic
Category:
Fiscal subject related
Views:
167
Content accuracy validation date:
16.08.2024
Content accuracy validation time:
08:24h
Tax authorities clarified that the outputs from risk analysis activities are not directly used to create tax measures. Instead, they are forwarded to control structures for further evaluation. These structures then decide on potential investigation activities, conducted in full compliance with the adversarial principle, recently reinforced by Article 6bis of the Taxpayer's Rights Statute. The AI algorithms employed by the Revenue Agency are designed to be explainable, non-discriminatory, and transparent. Only one organizational structure within the agency is authorized to implement predictive algorithms, staffed by professionals with expertise in engineering, econometrics, statistics, and physics.
To ensure the correct use of data, the Tax Office adheres to international standards such as ISO/IEC 27000 and the GDPR (General Data Protection Regulation). Agency staff are restricted to using only the IT applications and databases necessary for their tasks, following principles of necessity, relevance, non-excess, and minimization of personal data processing.
All system accesses are meticulously tracked, with the Mistral computer application identifying and reporting potentially unusual accesses to facility managers. For all risk analysis activities, a Data Protection Impact Assessment (DPIA) is conducted. Financial report archives are particularly safeguarded through pseudonymization techniques, organizational segregation, and other protective measures. This comprehensive approach underscores the Revenue Agency's commitment to leveraging digital tools for enhanced tax compliance while maintaining stringent data privacy and security standards. The tax databases are interoperable with those of other administrations and public bodies, including the Guardia di Finanza.
Other news from Italy
Updated tax penalty regime in Italy
Public
Italy
Author: Nikolina Basic
Italy
Author: Nikolina Basic
In a significant move to harmonize its tax sanction system with other EU countries, a new decree has been introduced, aiming to provide more proportional sanctions for tax violations. Decree n. 87/2024, released on 28 June 2024, amends several regulations and will apply to violations committed from 1 September 2024. Let's find out more about these changes! The updated legislation brings several c... Read more
VAT refund procedure in Italy
Public
Italy
Author: Nikolina Basić
Italy
Author: Nikolina Basić
Italian taxable persons who pay VAT in another EU Member State can request a refund of the tax paid. Namely, taxable persons established in Italy can request a VAT refund for tax paid in another EU country, as outlined in Article 38-bis1 of Presidential Decree 633/1972. The refund request must be submitted through a specific electronic procedure that sends the request directly to the Italian Reven... Read more
EU to protect domestic e-commerce sellers with a cross-border tax reform
Public
Author: Stefan Ditrih
As online shopping continues to grow, the European Union is planning to implement new regulations to protect local e-commerce sellers. One significant change affects consumers who shop on international platforms like Temu or AliExpress. The EU has already taken some steps at the first sign of growing foreign e-commerce sellers, and since July 1, 2021, all goods entering the EU, regardless of their... Read more
EU VAT Validation Tool
Public
Author: Kristina Dosen
One way to validate VAT numbers in the EU is the VAT Information Exchange System (VIES), which is a crucial tool for businesses operating within the European Union. Owned by the European Commission, VIES is a search engine that retrieves data from national VAT databases to verify VAT numbers. Here’s a detailed look at how VIES works and its significance. How VIES Works When a search is made usi... Read more
A new postponement about the Plastic Tax in Italy
Public
Italy
Author: Nikolina Basic
Italy
Author: Nikolina Basic
The implementation of the Italian plastic tax on manufactured products for single use (MACSI) has been postponed once again, now set to take effect in July 2026. Initially suspended for 2023, the tax was rescheduled for July 2024, but the new deadline provides additional time for preparation. The tax aims to curb the production and use of single-use plastics, promoting the search for less harmful... Read more
New document was uploaded: S4F backoffice patch
Author: Kristina Dosen
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). For each patch it is specified for which countries it is released for and with this information and with information from release notes user should prioritize the installation of the patch if S4F Backoffice is used in specified countries. Even though the patch may be prioritized for specified countries please make sure to install all patches sequentially, including the previous ones (if any) even if they are not related to used countries. This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Please note that this patch contains changes for following country: France Read more