Italy’s Ministry of Economy and Finance has published the Decree of 6 December 2024 outlining the penalty reliefs rules for violations of Italy’s hybrid mismatch rules.
The Decree’s penalty relief rules are taken from Legislative Decree No. 209 of 27 December 2023. The hybrid mismatch rules, introduced by Decree No. 142 of 2018, implement the EU Anti-Tax Avoidance Directive (ATAD).
The Decree states that the documentation must be prepared for each tax period with reference for each taxable person in Italian in an electronic format. A paper format is acceptable if the electronic version can be provided within a reasonable timeframe.
The documentation must be submitted to the tax authority within 20 working days of request. If more information is needed during an audit, it must be provided within 30 working days, which may be extended up to 60 days.
The documentation applies only to the relevant tax period and must be kept until the statute of limitations expires.
The documentation should typically be completed and signed by the legal representative before the tax return deadline for the applicable fiscal year.
