Vatican Opens Books For Italian Government

This morning, in the Secretariat of State, an agreement on fiscal matters was signed by the Holy See and the Italian Republic. It was signed on behalf of the Holy See by Archbishop Paul Richard Gallagher, secretary for Relations with States, and for the Italian Republic by Pier Carlo Padoan, minister of Economics and Finance, with full powers. The reforms introduced in 2010 and the creation by the Holy See of institutions with specific experience in economics and finance now enable full administrative cooperation, also with regard to fiscal matters. Within the framework of the special importance of bilateral relations, Italy is the first country with which the Holy See has signed an agreement governing the exchange of information. In accordance with the current process of establishing transparency in the field of financial relations at a global level, the Convention transposes the most up to date international standard in terms of the exchange of information (article 26 of the OSCE Model) to regulate cooperation between the competent authorities of the two contracting Parties. The exchange of information relates to the fiscal year starting 1 January 2009. The Convention, from the date on which it enters into force, will enable full compliance, with simplified procedures, with the tax obligations relating to financial assets held by institutions engaging in financial activities in the Holy See by various physical and legal persons resident in Italy. The same persons will be able to have access to a procedure for the regularisation of these activities, with the same effects as established by Law 186/2014. The Convention will also implement the provisions of the Lateran Treaty regarding tax exemption for property belonging to the Holy See, indicated in the same Treaty. Finally, the Convention incorporates the Exchange of notes between the Ministry for Foreign Affairs and the Secretariat of State in July 2007, which provides for the notification of tax acts to the Holy See authorities via diplomatic channels.