With the tax reform of the Meloni government, the discharge and long installments of tax bills should arrive.

In Italy, the Deputy Minister of Economy and Finance Maurizio Leo announced, uncollected taxes amount to 1,185 billion euros. A mountain of money and debts that the State, in some way, must try to dispose of.

With the tax reform, discharge and long installment payments should arrive – Sjbeez

And it intends to do so – with a view to the “fiscal peace” that underpinned the electoral program of the centre-right coalition – in the most painless way possible for taxpayers. The executive aims to intervene quickly.

The aim is to avoid the accumulation of new debts and to allow collaborative entities to comply with the tax authorities. Hence the idea of ​​introducing the so-called discharge and the long-term installment of tax bills. But how will the innovations that the Meloni government appears intent on introducing work? Let’s try to understand it.

Discharge and long installments of tax bills: how it will work

First of all it must be said that discharge and long installment payments are not yet operational: the deputy minister of the MEF, Maurizio Leo, spoke about this during an interview, where he announced the possible introduction of these innovations in the tax reform.

MEF deputy minister Maurizio Leo announces discharge and long installment payments – (Photo Ansa) – Sjbeez

The government is developing a tax reform to give a “more human” face to the tax system – one of the crucial points of the centre-right’s electoral programme. To do this, the issue of collection becomes central. According to what Leo revealed, there will be two very important chapters in the tax reform: the discharge and the possibility of paying the tax bills in installments for up to 120 months.

One of the possibilities that the government is thinking of introducing is discharge. This measure consists in the possibility of returning uncollectible bills to the taxing body in the long term. The taxpayer would have the possibility to make use of this tool after five years, forcing the Revenue Collection Agency to return the tax bills found to be uncollectible to the tax authority.

In this way, collection will focus only on credits that are still truly collectible. Without wasting energy and resources trying to collect at all costs bills that have exceeded five years and for which, in most cases, a write-off order is issued.

Another possibility that the government is considering is the long installment of tax bills: the debts can be paid off in 10 years. However, the ten-year debt repayment would be reserved for honest taxpayers who struggle to pay off the debt in a shorter term. The Revenue Agency will not give discounts to “smart people”, that is, to those who do not intend to pay taxes or who defer them only to make investments.