The European Commission has ordered Italy to collect back property taxes from non-profit organizations that were exempt from that tax. It is mainly the Catholic Church that has benefited from this exception.
Italy must still collect the property tax, which non-profit organizations were exempt from between 2006 and 2011, the European Commission believes. The decision follows a 2018 ruling by the Court of Justice of the European Union that said the exemption violated European competition rules and that Italy had to collect the amount.
Always knock
Six years earlier, the European Commission had already established the violation, but then ruled that Italy could refrain from collecting the tax. Now Brussels still thinks that the Italian government should turn to the organizations for that money. According to calculations by the Italian tax authorities, this is about 100 million euros.
The biggest beneficiary of this exemption is the Catholic Church, which is one of the largest real estate owners in Italy, with about 5,000 buildings outside the churches.
The arrears tax should not be paid on the church buildings, but on buildings that are used for (semi-)commercial activities, such as schools, hospitals and hostels. According to the European Commission, the exemption from property tax for these buildings is a distortion of competition and a disguised form of state aid.
How to collect money?
The commission acknowledges that it is difficult to find out exactly who received how much in illegal state aid, but has instructed Italy to collect “at least part” of the tax. The Italian tax authorities are now puzzled over how to calculate the amounts. The Agenzia delle Entrate is not known for its determination when it comes to fighting tax evasion.
Watch our news videos in the playlist below:
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss a thing of the stars.