Tax incentives for construction, how penalties are reduced through the publication of the decree

Important Updates on Building Bonuses: Decrease in Sanctions Linked to Different Types of Credits

A significant novelty has been introduced for those who have benefited from building bonuses: sanctions are now reduced based on the type of credit involved.
As part of the fiscal reform, the “Sanctions Decree” has been published in the Official Gazette, lightening tax penalties.
This change will also impact building bonuses, as the sanction percentages prior to the decree’s publication ranged from 30% for unsupported credits, up to 200% for non-existent credits.

The decree now provides for a reduction in sanction percentages, which will be, starting from September 1, 2024:

• 25% for unsupported credits;
• 70% for non-existent credits.

The publication of the Sanctions Decree in the Official Gazette on June 28, 2024, also brings significant clarifications for taxpayers, providing greater clarity on what needs to be paid and why.
The category of non-existent credits is expanded, with a considerable decrease in sanctions for this violation.

Decrease in Tax Penalties Across Various Categories

Not only building bonuses are affected by the new regulations.
Finally, the maximum fines of 240% will be a thing of the past, halving to 120% for taxpayers who have omitted tax or Irap declarations.
In cases of fraudulent declarations, fines will decrease from the current range of 90% to 180% to a fixed 70% penalty starting from September 2024.

For failure to record acts, the fine will range from 45% to 120% of the amount due.
For acts denied during inspection or not submitted, sanctions will vary between 250 and 2,000 euros.
In case of discrepancies in the succession declaration, fines will fluctuate between 250 and 1,000 euros, while omitting the succession declaration will incur fines ranging from 150 to 500 euros.

Changes in Building Bonus Sanctions

Building bonuses, after the halt of invoice discounts and credit transfers, can now only be used as tax deductions.
If the credits are illicit due to fraud or skipping administrative steps, sanctions apply.
The new legislative decree aims to reduce the sanction percentages for non-entitled or non-existent credits.

However, it’s important to note that in the case of non-existent credits based on fraudulent actions involving false documentation, the prescribed sanction of 70% may be increased by half to 105% or doubled to 140%.

Changes in Non-Existent Credits:

Prior to the decree’s publication, non-existent credits were those meeting a dual requirement:

• They lacked, even partially, the prerequisites for entitlement;
• The absence of prerequisites couldn’t be detected by automated checks.

The Sanctions Decree eliminates this second requirement and expands the category of non-existent credits to include all those claimed (and used) without meeting the necessary requirements.
While previously only fraudulent credits were classified as non-existent (e.g., false documentation or works never completed), the focus is now solely on the partial absence of legal prerequisites.