Italian 'luxury' tax misses its target
AOPA Italy is awaiting news from the Italian government on the “luxury tax” which is hitting general aviation aircraft after managing finally to hold talks with a senior minister.
The tax is particularly ruinous for Italy because it applies to any private aircraft which spends more than 48 hours in the country, whatever its nationality. This is leading owners across Europe to avoid Italy for fear of being landed with a bill of thousands of euros. The tariff can reach €300,000 for larger business jets.
Massimo Levy of AOPA Italy reports that representatives met last week with the Minister of Economic Development, who was the first high-level official who was prepared to listen to what they had to say.
“He was surprised, not to say astonished, by the number of errors in the law,” Massimo says. “He was not aware that the real objects of the tax, the luxury business jets, are almost completely exempted. In Italy there are only six Citations owned by private organisations and thus liable for the tax. All the others are ‘public transport’ and therefore exempt. He has promised to speak to the Government to see if something can be done. Time is getting very short because payment for an aircraft which held a valid ARC on december 6th is due on March 5th.”
As the tax conditions remain largely unclear, AOPA Italy has submitted to the tax office a formal demand for clarification on many points. The tax office has 180 days to answer, but if they do not answer, Italian law states that answers suggested in the demand may be considered as 'accepted'.
An example of how, when and if the tax will have to be paid will soon be posted on the AOPA Italy website
http://www.aopa.it, with an English translation.
