I know I should not laugh but.........
Discussion
(Reuters) - Italian officials combating a national plague of tax evasion hit the jackpot in a swoop on a posh ski resort, catching 42 drivers of Ferraris and other luxury cars who had declared incomes of less than 30,000 euros ($38,700) a year.
The technocrat government of Mario Monti is stepping up a war on tax evasion that robs the Italian exchequer of an estimated 120 billion euros a year, nearly four times the value of the prime minister's new austerity budget.
Amid howls of protest from local officials, conservative politicians and shop owners, 80 tax inspectors fanned out through Cortina d'Ampezzo, one of Italy's smartest ski resorts, on December 30.
They have now reported that of 251 "super cars" checked in the Dolomites town, 42 belonged to people "who could barely make ends meet" on declared annual incomes of less than 30,000 euros, and 16 to people with declared incomes of under 50,000 euros.
Some 19 luxury cars were owned by companies that declared a loss in both 2009 and 2010, and 37 by firms reporting annual revenue below 50,000 euros, the inspectors' statement said.
Their bonanza did not stop there.
Their investigations of Cortina's swish restaurants showed that the receipts recorded by cash tills under surveillance were 300 percent higher than those declared a year earlier, before Italy was hit by the worst of the economic crisis.
They were more than double those of the previous day, reflecting the practice of not issuing receipts, which are registered for sales tax.
The jump was an even bigger 400 percent in luxury shops in the resort, a favorite haunt of millionaires and showbiz stars.
PAIN
Italy has one of the world's highest rates of tax evasion and Monti, whose budget of spending cuts and tax rises is hitting Italian households hard, is under pressure to spread the pain fairly.
Italy's huge public debt and almost static growth have put it at the heart of the euro zone debt crisis.
Monti was appointed in November, replacing flamboyant tycoon Silvio Berlusconi, to try to end a loss of confidence on financial markets that has pushed the country's borrowing costs to untenable levels.
Italian authorities are using new weapons against tax evasion including comparing citizens' declared incomes with their bank deposits and ownership of homes and luxury items like yachts and sports cars.
They have also capped cash transactions at 1,000 euros to tackle another common form of tax evasion - the undervaluing of goods and services. Italy's dentists are notorious for offering a discount if paid in cash.
Special dogs capable of sniffing bank notes have recently been stationed at Italy's borders to detect people trying to smuggle out their savings in attaché cases and suitcases.
Two letter bombs were sent to the tax collection agency Equitalia's offices in Rome last month. One was intercepted but the other blew off part of a finger of the agency's director general. They were claimed by an anarchist group.
The technocrat government of Mario Monti is stepping up a war on tax evasion that robs the Italian exchequer of an estimated 120 billion euros a year, nearly four times the value of the prime minister's new austerity budget.
Amid howls of protest from local officials, conservative politicians and shop owners, 80 tax inspectors fanned out through Cortina d'Ampezzo, one of Italy's smartest ski resorts, on December 30.
They have now reported that of 251 "super cars" checked in the Dolomites town, 42 belonged to people "who could barely make ends meet" on declared annual incomes of less than 30,000 euros, and 16 to people with declared incomes of under 50,000 euros.
Some 19 luxury cars were owned by companies that declared a loss in both 2009 and 2010, and 37 by firms reporting annual revenue below 50,000 euros, the inspectors' statement said.
Their bonanza did not stop there.
Their investigations of Cortina's swish restaurants showed that the receipts recorded by cash tills under surveillance were 300 percent higher than those declared a year earlier, before Italy was hit by the worst of the economic crisis.
They were more than double those of the previous day, reflecting the practice of not issuing receipts, which are registered for sales tax.
The jump was an even bigger 400 percent in luxury shops in the resort, a favorite haunt of millionaires and showbiz stars.
PAIN
Italy has one of the world's highest rates of tax evasion and Monti, whose budget of spending cuts and tax rises is hitting Italian households hard, is under pressure to spread the pain fairly.
Italy's huge public debt and almost static growth have put it at the heart of the euro zone debt crisis.
Monti was appointed in November, replacing flamboyant tycoon Silvio Berlusconi, to try to end a loss of confidence on financial markets that has pushed the country's borrowing costs to untenable levels.
Italian authorities are using new weapons against tax evasion including comparing citizens' declared incomes with their bank deposits and ownership of homes and luxury items like yachts and sports cars.
They have also capped cash transactions at 1,000 euros to tackle another common form of tax evasion - the undervaluing of goods and services. Italy's dentists are notorious for offering a discount if paid in cash.
Special dogs capable of sniffing bank notes have recently been stationed at Italy's borders to detect people trying to smuggle out their savings in attaché cases and suitcases.
Two letter bombs were sent to the tax collection agency Equitalia's offices in Rome last month. One was intercepted but the other blew off part of a finger of the agency's director general. They were claimed by an anarchist group.
I often think why more Governments don't do this kind of "spy work" when it comes to tax dodging/benefits claims and the likes. (Maybe they do, but I've not heard of it)
For instance go to a busy indoor shopping centre on a weekday (working hours) and check/ask people if they are on long term sick from work etc.. and if they receive benefits from this. I can wager that a lot of people (more than you would think) would be caught out by this approach.
For instance go to a busy indoor shopping centre on a weekday (working hours) and check/ask people if they are on long term sick from work etc.. and if they receive benefits from this. I can wager that a lot of people (more than you would think) would be caught out by this approach.
zuby84 said:
I often think why more Governments don't do this kind of "spy work" when it comes to tax dodging/benefits claims and the likes. (Maybe they do, but I've not heard of it)
For instance go to a busy indoor shopping centre on a weekday (working hours) and check/ask people if they are on long term sick from work etc.. and if they receive benefits from this. I can wager that a lot of people (more than you would think) would be caught out by this approach.
Smacks a bit of "pappieren bitte" (sp)For instance go to a busy indoor shopping centre on a weekday (working hours) and check/ask people if they are on long term sick from work etc.. and if they receive benefits from this. I can wager that a lot of people (more than you would think) would be caught out by this approach.
MOst governments would be out on their ear at the next election for such an approach. Fortunately, the Italian overlords don't need to worry about this technicality any longer.
zuby84 said:
For instance go to a busy indoor shopping centre on a weekday (working hours) and check/ask people if they are on long term sick from work etc.. and if they receive benefits from this. I can wager that a lot of people (more than you would think) would be caught out by this approach.
Why would being on long term sick stop you from going shopping?Ofcourse, just because you are on long term sick doesn't mean you can't go shopping; but it's the condition that some people "overexagerate" they have that allows them not to work should also stop people from doing everyday normal things such as shopping (without difficulty).
I'm a GP and I see people a lot of the time who are "on the sick" who I know full well could do some type of work if they wanted to. But with no proof that they are doing everyday activities; you have to take everything on face value.
I feel if people can walk around and do normal things such as shopping; there must be some type of work open to them. But then again that is my opinion. Thinking about it further; this idea would just be a bit too much of a "Police State" kind of set-up - very difficult to implement. But is there much difference to what the ANPR cameras/police do to us now in monitoring who should be on the road and who shouldn't?
I'm a GP and I see people a lot of the time who are "on the sick" who I know full well could do some type of work if they wanted to. But with no proof that they are doing everyday activities; you have to take everything on face value.
I feel if people can walk around and do normal things such as shopping; there must be some type of work open to them. But then again that is my opinion. Thinking about it further; this idea would just be a bit too much of a "Police State" kind of set-up - very difficult to implement. But is there much difference to what the ANPR cameras/police do to us now in monitoring who should be on the road and who shouldn't?
I was on holiday in Rome from 27 December to 2 January and only saw 4 Ferraris the whole week - and three of those were sitting in the dealership! I spoke to one of the Indies here when I got back and he experienced a similar thing in November. He commented that the crisis in Italy has meant many owners are keeping a very low profile from both a moral standpoint (not wanting to appear to loaded to the too few poor soles who do bother to declare and pay their taxes in Italy) but more importantly did not want the sharp eye of the Italian Revenue services identifying them and asking them to many questions!! 
gaters said:
I was on holiday in Rome from 27 December to 2 January and only saw 4 Ferraris the whole week
Doesn't mean much at all. I never see many Ferraris in Italy although I go there usually twice a year, most I see there are foreign cars. Drove around for a week and a half in September and saw 1 other than my own (not counting Maranello of course). That has been the norm, usually, 1 sighting a week.Onno
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