The Italian Revenue Agency is set to conduct extensive checks on citizens' bank accounts in search of undeclared income as part of its organizational plan for 2026-2028.
As outlined in the Integrated Plan of Activity and Organization 2026-2028, the Italian Revenue Agency is gearing up to perform widespread inspections of individuals' bank accounts to identify undeclared income. This initiative aims to tackle tax evasion by detecting anomalies in banking flows, assisted by cross-referencing available databases. By focusing on potentially risky situations, the Agency intends to enhance its ability to ensure tax compliance among Italian citizens.
The guiding principle for these checks will be the legal presumption that any unexplained movement of money in a bank account is considered taxable income. Thus, it will fall upon taxpayers to prove the contrary. This shift in responsibility places a significant burden on citizens, requiring them to provide justification for any transactions that the Revenue Agency deems suspicious. In practice, this means that if individuals cannot provide prior justification for questionable financial activities, they must document that the alleged amount has been previously taxed, thereby complicating compliance.
This approach by the Italian government reflects a broader trend of increasing scrutiny on financial activities to curb tax evasion. As the state seeks to improve fiscal revenues, such measures may lead to more extensive monitoring of citizens' finances, potentially raising concerns about privacy and financial autonomy. It also indicates a rigorous attempt to enforce tax obligations, underscoring the importance of keeping thorough financial records to aid in any future disputes with tax authorities.
