Preventive agreement: beware of the pitfalls it can present
The idea of a two-year composition with creditors is certainly interesting and has advantages, especially if one expects an improvement in one's revenues in future years. The situation is different if, however, revenues are expected to decline or if sudden internal or external difficulties are faced.
In these cases, what is presented as a great advantage risks becoming a trap.
First of all, it is a process that must be approached with great care . The new legislative decree regarding the biennial preventive agreement (CPB) clearly establishes the terms and conditions for its use. The taxpayer must be careful not to make mistakes during the process, as any alteration of the declared data can lead to immediate termination of the agreement with the tax authorities, even if the error is only material. If during an assessment the presence of undeclared assets or non-existent liabilities is detected, the taxpayer participating in the CPB will lose its membership. This may reduce its effectiveness and application.
The decree also provides a specific four-phase path to join the CPB. However, the deadlines for joining have been postponed by 30 days in the first year of application, 2024, to facilitate the running-in phase of the instrument. The procedure requires that the Revenue Agency make specific IT programs available to taxpayers for the acquisition of the necessary data by March 15th of each year. Subsequently, the taxpayer has the task of transmitting their data by June 20th, followed by the presentation of the proposal for the biennial definition of income by June 25th by the Revenue Agency. Finally, by 30 June, the taxpayer must decide whether to accept or reject the proposed settlement and pay the related taxes. Very tight deadlines, maybe a little too tight. Furthermore, 5 days to decide are very few, it's a take it or leave it.
Furthermore, the decree establishes that the declaration taken as reference for the agreement must not be modified in such a way as to alter the quantification of income or the value of net production. The institute can only be used until access, inspections or other administrative assessment activities are initiated.
Therefore, non-payment of the agreed taxes can lead to the forfeiture of the agreement , unless they are paid with active repentance according to specific regulations. It is therefore essential that the taxpayer adheres to the CPB carefully and strictly follows the established provisions to avoid forfeiture and legal consequences.
Finally, be careful: failure to comply with the tax agreement means tax controls, almost automatically. So there is a big problem for those who believe that, in subsequent years, their turnover will reduce and therefore do not decide to join the composition with creditors.
A lot will depend on the basic idea with which the calculation software of the agreement itself will be issued, whether with the idea of satisfying the taxpayer or just of increasing the amount.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article Composition with creditors: beware of the pitfalls it can present comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/concordato-preventivo-attenti-alle-insidie-che-puo-presentare/ on Sun, 05 Nov 2023 10:00:51 +0000.