Voluntary disclosure (ravvedimento operoso) is an instrument
provided for under Italian tax law that allows taxpayers to subsequently
correct tax irregularities or omissions on their own initiative. This applies
in particular to cases in which taxes were paid late or tax obligations were
not fulfilled or were fulfilled only partially.
The distinctive feature of this method, which is recognised by the tax
authorities, lies in the possibility of correcting errors proactively and
before a formal assessment by the tax authority. In return, the taxpayer
benefits from significantly reduced administrative penalties compared to the
ordinary sanctions.
Voluntary disclosure promotes early self-correction:the earlier the error is corrected, the lower the administrative
penalty. The timing of the correction is therefore decisive for the
economic advantage of the ravvedimento operoso.
For violations committed from 1 September 2024 onwards, it is
decisive whether the error is corrected on the taxpayer’s own initiative
without any notice from the tax office, or only after the tax office has become
aware of it.
Voluntary disclosure on the taxpayer’s own initiative
The standard case of voluntary disclosure applies where the taxpayer
independently identifies the irregularity and corrects it on their own
initiative before the tax office becomes aware of it or takes any measures.
In this case, this is referred to as the classic ravvedimento operoso.
The amount of the penalty reduction depends exclusively on the timing of the
correction. The earlier the error is corrected, the more favourable the
reduced penalty:
- 1/10 of the penalty if corrected within 30 days;
- 1/9 of the penalty if corrected within 90 days;
-
1/8 of the penalty if corrected within one year or by the
filing deadline of the tax return for the relevant year;
-
1/7 of the penalty if corrected after these deadlines, but
still within the statute of limitations.
Voluntary disclosure following a notice from the tax authority
As soon as a notice from the tax office has been received, any further handling
of the matter should always be examined together with the adviser. In
particular, where:
- facts or legal issues have not yet been clarified,
- the matter is complex or concerns several tax periods, or
- alternative procedural routes may be available,
it may be appropriate to analyse the further course of action carefully before
deciding on a correction.
In such cases, the law provides for a reduction of 1/6, 1/5 or 1/4
of the ordinary penalty. Further details are deliberately omitted here, as
these situations are regularly part of an ongoing procedure and must be
assessed on an individual basis.
Both in the case of voluntary disclosure on the taxpayer’s own initiative and
following a notice from the tax authority, statutory late-payment interest must
be paid in addition to the reduced administrative penalty. This interest is
calculated on a daily basis on the basis of the applicable statutory reference
interest rate.
Frequently Asked Questions (FAQ)
1. Does voluntary disclosure have to be applied for?
No. Voluntary disclosure does not require a formal application.
The correction is carried out by:
- submitting a corrected tax return (if required); and
-
paying the tax due, the late-payment interest and the reduced administrative
penalty (usually via Form F24).
2. Why is early correction particularly advisable?
The earlier the underlying facts or the tax violation are reviewed, the sooner
an appropriate solution can be developed together with the adviser.
Timely self-correction:
- reduces the financial burden,
- avoids later disputes with the tax authorities,
- increases legal certainty for companies and private individuals.
3. Which amounts must be paid as part of ravvedimento operoso?
As part of voluntary disclosure, three components must always be paid:
- the tax due;
- statutory late-payment interest (calculated on a daily basis);
-
a reduced administrative penalty, the amount of which depends on the timing
of the correction.
Only once all three components have been paid in full is the correction deemed
to be effective.