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Español VAT – Value Added Tax on Processed Tobaccos. Scam in Progress?
The “Direzione Nazionale dell'Agenzia delle Entrate” (National Office of the Revenue Agency) overturns the judgment of the Regional Agencies granting to the foreigner, Logista, the privileges that belonged to the Italian State Monopoly, and condemning Italian manifacturers. But Yesmoke is watching and will denounce the scam.
The Italian State Monopoly, a subject that benefited from the “Monophase Value Added Tax” (IVA monofase) tax regime no longer exists. Law no. 76, dated 7 March 1985 is clear and the Revenue Agency of the Piemonte Region clarified any doubts. There is no need for the Direzione Centrale Normativa dell’Agenzia delle Entrate (Central Normative Office of the Revenue Agency) to interpret it: “The law is effective for processed tobaccos destined for sale to the public in the territory subject to monopoly”.
The Italian State Monopoly used to be the only distributor, producer and importer of processed tobaccos. Therefore, the VAT regime was “effectively monophase” and it could not be otherwise.
Why should the same privileges that the monopoly enjoyed be granted also to Logista, a private company that is only the distributor? Moreover, if the heir of the Monopoly's distribution activities benefits from these privileges, why shouldn't the heirs of the Monopoly’s production also benefit?
The VAT regime, so called “monophase” would bring chaos in the tobacco sector and serious damage to national manufacturers.
Moreover, the National Revenue Office (Direzione Nazionale dell'Agenzia delle Entrate), recognizing as valid the monophase VAT, that provides for the payment of the VAT prior to the distribution chain would exonerate Logista from the regulations of the Customs Agency (Agenzia delle Dogane), which all fiscal deposits depend on, and that has clearly regulated the operation.
And after being curiously exonerated from giving the fidejussion prescribed for fiscal deposits for the excise tax, Logista would also be exonerated from providing the fidejussion due for the VAT fiscal deposits.
Would this be the first fraud?
The intervention of the Revenue Agency to clarify the VAT regime on processed tobaccos was requested by Yesmoke. Why did no one make a move before? Yesmoke has millions in VAT credits that it has not been able to get back; how much do British American Tobacco Italia and Manifattura Sigaro Toscano have?
With what sort of business logic have the Italian producers of processed tobaccos been operating in these past years? How can a company have a large VAT credit in its balance and not ask how to get it back?
“On the 9th of November 2009, Manifattura Sigaro Toscano presented an interrogation appeal to the Revenue Agency’s Central Normative Office (Direzione Centrale Normativa) also on behalf and in the name of Logista”, with which it hoped to have an interpretation different from the one already given to Yesmoke by the Piemonte Regional Tax Office. Apparently, Manifattura Sigaro Toscano prefers to remain a VAT creditor towards the State.
BAT Italia seems to have no interest at all in joining Yesmoke’s battle. And yet, it too, should have large VAT credits for which it cannot request reimbursement.
It makes one wonder if the problem for them has been “fixed” in some other way, without Yesmoke knowing it.
Soon British American Tobacco will close the last manufacturing plant it has in Italy. The future of processed tobacco production in our country will be only in the hands of Yesmoke along with Manifattura Sigaro Toscano and MIT, maker of the Linda and Futura.
Yesmoke cannot be damaged. It will be watching and it will denounce any attempted frauds.
Privatizations, Italian style
Today the tobacco multinationals are the owners of a market worth 14 billion a year in tax revenues, and as a sign of contempt for our country, not only have they transferred their production to other countries, leaving Italian workers unemployed, but they do not even pay taxes in Italy, or if they pay, it is purely a symbolic amount.
The National Tax Agency (Direzione Nazionale dell'Agenzia delle Entrate), by overturning the opinion of the regional tax offices and granting the privileges the State Monopoly once had to Logista, would condemn the Italian manufactures and would hand the entire market over to the multinationals.
Foreign producers have taken over the Italian market thanks to privatizations made by incompetents, and today they think they have the power to dictate the rules.
More info
- Cigarettes – 500 million in omitted VAT discovered by Yesmoke
- Value Added Tax – British American Tobacco vs. Yesmoke
- Value Added Tax Chaos – The Agenzia delle Entrate must intervene
- British American Tobacco vs. Yesmoke – The “Correction”
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