Active repentance

In addition to the reduction of administrative sanctions, the active repentance also has positive effects on the penal level, constituting reason for non-punishment or mitigating circumstance of any tax offenses committed.

1 Cause of non-punishment

Pursuant toart. 13, paragraph 1, Legislative Decree 74/2000 (New regulation of crimes relating to income tax and value added), the crimes referred to in the articles

• 10-bis (failed to pay due or certified withholding taxes),
• 10-ter (omitted payment of VAT) e
• 10-quater, paragraph 1 (undue compensation)

are not punishable if, before the opening statement of the first instance hearing, the tax payables, including administrative fines and interest, have been extinguished by full payment of the amounts due, possibly also following a repentance.

Likewise, according to theart. 13, paragraph 2 of the same decree, the crimes referred to in the articles

• 4 (misrepresentation) e
• 5 (omitted declaration)

are not punishable if the tax debts, including penalties and interest, have been extinguished by full payment of the amounts due, following the active repentance or the presentation of the omitted declaration within the deadline for submitting the return relating to the following tax periodprovided, however, that the repentance or presentation occurred before the offender had formal knowledge of the accesses, inspections, checks or the start of any administrative investigation activity or criminal proceedings.

Finally, paragraph 3 of the law in question provides - in cases where, before the opening declaration of the trial of first instance, the tax debt is being extinguished by installments or following partial or fractional payments - the concession of a term of three months for the payment of the residual debt, possibly extendable by the Judge up to a further three months. In this case, the course of the limitation period remains suspended.

2 Extenuating circumstance

In accordance withart. 13-bis of Legislative Decree 74/2000, the active repentance - apart from the cases of non-punishability illustrated in the previous paragraph - in any case integrates a mitigating circumstance capable of mitigating the disciplinary treatment: the penalties for the tax crimes envisaged by Legislative Decree 74/2000 can in fact be decreased up to half and the ancillary penalties normally envisaged do not apply if, before the opening statement of the first instance hearing, the tax debts, including administrative fines and interest, have been extinguished by full payment of the amounts due.

For the same offences, active repentance is also a prerequisite for being able to request the application of the penalty pursuant to art. 444 cpp (so-called "plea bargain“).