Tax Evasion: the Rules for Payments, Money Transfers and Restrictions on the Use of Cash

The limitation of the use of cash and bearer securities has always been one of the cornerstones put in place by governments and the tax system to prevent tax evasion and money laundering deriving from illegal activities. Precisely for these reasons, these limitations are intended to allow the traceability of operations, channeling these financial flows through banks, Poste SpA, payment institutions and electronic money institutions. According to the anti-money laundering regulations, this prohibition exists whether the nature of the licit or illicit operation.

 

Meet needs of pensioners and people

Meet needs of pensioners and people

Although many argue the need for even more stringent measures to meet the needs of pensioners and people not used to using electronic means of money transfer, starting from 1 January 2016, the cash use limit has been increased to to 3 thousand euros, except for the so-called “money transfers”, for which the limit remains at 999.99 euros. Instead from 2018 the limit for the activities of “buy gold” the limit is lowered to 500 euros, since the legislator sees the possibility that the total amount of the operation occurred with the “buy gold” is broken up into more distinct money donations in cash of a lower amount “at the threshold thus creating artificial splitting to avoid traceability as required by law, also masking illicit operations.

In addition, the Treasury’s FAQs provided clarifications for payments over € 3,000, explaining that it is possible to pay this amount either by traced means or by cash, provided that the cash portion does not exceed € 3,000. In addition, in the case of annual professional services, for example, payment of the fee in cash is allowed on a monthly basis without incurring the violation of the rules relating to the use of cash, thus assuming a negotiating agreement between the parties for the payment of corresponding.

 

There were important news concerning the bank or postal bearer deposit books

There were important news concerning the bank or postal bearer deposit books

whose balance, until 4 July 2017, could not be equal to or greater than one thousand euros. However, it was precisely from that date that the issue of deposit books, both bank and postal to the bearer, was prohibited, allowing only the issue of name booklets, while for existing bearer passbooks the transfer was forbidden, and it is set December 31, 2018, as the deadline for the termination of these booklets.

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