Tax Penalties and the Ravvedimento Operoso

Voluntary settlement of tax paid late.

The Ravvedimento Operoso Procedure derives from the Italian word which can be literally translated as “redemption” or “penitence”.   It is, however, in this context not a religious concept, but simply a procedure that allows taxpayers who have missed a deadline for payment, or who have underpaid tax, to pay the tax late, on their own initiative, with a smaller penalty compared to the rather stiff penalty that would  apply, were the Tax Agency to make an assessment.  How much you pay depends on how late you make the payment.   The system is a bit fiddly so you should check with your accountant or tax adviser to get an ad hoc calculation of the penalty for late payment and the relevant codes to show on the F24 tax payment form.  The table below summarises the main principles.  Interest  will also be due in addition to these penalties from the due date to the date of payment.

The Ravvedimento procedure is only available providing that the authorities have not started proceedings to assess the tax due.

Ravvedimento – reduced penalties for spontaneous late payment
After Deadline for payment Normal Penalty Reduced penalty

Effective penalty with ravvedimento

Within 14 days 15% 1/10 0.10 % for each day late
From 15 to 30 days 15% 1/10 1.5%
From 31 to 90 days 15% 1/9 1.67%
From the 91st day to the deadline for filing the tax return 30% 1/8 3.75%
Prior to the filing date for the following year’s tax return 30% 1/7 4.29%
After the filing deadline for  the following year’s tax return 30% 1/6 5%

1 Comment on Tax Penalties and the Ravvedimento Operoso

  1. I received an inheritance of 100k from an Aunt in the UK in 2019. After paying all legal fees and taxes in the UK I invested it and left it.
    Recently I have discovered that I should have declared it in Italy as well.
    What steps should be taken?

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