The Role of Trust in the voluntary disclosure

Legislation on voluntary disclosure forecasts that the financial assets and property, as well as being transferred in Italy or in another country, can remain in the country in which they are located (cd. “Legal repatriation”).

The choice will depend on various factors including, primarily, the specific characteristics of the good: if they have financial activities, all options will be used, while in case of equity investments or real estate you will necessarily have to resort to Repatriation Law.

According to the taxpayer’s will, different subjects will intervene in voluntary disclosure operations and in particular in the step following the one where the taxpayer has defined its tax or criminal position in terms and procedures prescribed by law .

Voluntary Disclosure Galvani FiduciariaIn the event that the activities are “transferred” to Italy through Repatriation Law, the trust company will take on a central role, becoming the withholding agent while the foreign Bank keeps the financial management. The repatriation will take place by assigning all financial and foreign real estate activities to the Trust Company with a contract of fiduciary mandate.

With this procedure, the trustee undertakes to apply, if any, deductions and due replacement taxes and to perform the necessary communication to the Financial Administration and other supervisory bodies. The replacement tax allows the settlor, among others, to count on the correct fulfillment of tax obligations, in particular to be exonerated from the compliance of tax monitoring (RW Model only) and from the calculation of related taxes including Ivie and Ivafe.

From this brief examination performed, it is clear how the intervention of the Trust Company as part of the voluntary disclosure permits, thus:

  • to ensure confidentiality of the name of the customer, a part from the obligations relating to anti-money laundering;
  • to maintain assets under the Voluntary Disclosure (Repatriation legal) abroad;
  • to manage tax obligations required by Italian law.