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.
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:
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, where the matter is complex or concerns several tax periods, or where 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.