Company cars: The government approves an amendment to the budget which cancels the retroactivity on the tax increase on cars.No increase in the tax levy in 2006 for employees who use the company car as a fringe benefit. This is foreseen by an amendment of the government to the Budget which revises the rule introduced in the tax law decree to compensate for the higher expenditure deriving from the sentence of the European court of justice on the deductibility of VAT on company cars. The retroactivity of the levy, which would have been applied since January 2006, is canceled only for the increase payable by employees.
VAT – "The rules relating to VAT on company cars remain unchanged", said the undersecretary for the economy, Alfiero Grandi, adding that the government had "verified that the burden on employees would be very strong and we decided to cancel this part of the rule that concerns employees: it is in fact a levy that is not fair". Grandi also added that for 2006 "there is no problem" and that the government is also evaluating "an arrangement for the future". From Corriere della Sera 8-12-06
Company cars, no increase in 2006 VAT paid by employees.NoNo increase in the tax levy in 2006 for employees who use the company car as a fringe benefit. This is foreseen by an amendment of the Government to the Budget which revises the rule introduced in the tax law decree to compensate for the higher expenditure deriving from the sentence of the European Court of Justice on the deductibility of VAT on company cars. The retroactivity of the levy, which would have been applied since January 2006, is canceled only for the increase payable by employees.
"The rules relating to VAT on company cars remain unchanged" explained the Undersecretary for the Economy, Alfiero Grandi, adding that the Government had "verified that the burden on employees would be very strong and we decided to cancel this part of the rule which concerns employees: it is in fact a question of a levy that is not fair". Grandi also added that for 2006 "there is no problem" and that the Government is also evaluating "an arrangement for the future". From Il Sole 24 Ore 8-12-06
