The Milan law firm of Belluzo & Partners explain the new rule requiring Italian tax residents to disclose all assets held by a foreign trust of which they are a beneficial owner, regardless of the trust’s place of residence.

The rule, announced in Circular 38/E of 23 December 2013, takes effect in the 2013 tax year, and the deadline for reporting is 30 September 2014.

Such requirement holds for the “beneficial owner” of the assets located abroad and held directly or through companies, trusts and/or other arrangements (i.e. insurance wrappers).

The requirement refers to resident individuals and assimilated noncommercial entities (i.e. “società semplice” or trust). The old threshold (10.000 Euro of total assets value) for reporting requirements is no more applicable.

Clearly the new rules are to be considered in the general context of the fight against illegal offshore funds held by Italian residents.

The new law distinguishes between assets held in cooperative jurisdictions (“white list countries”) and in non‐cooperative jurisdictions (“nonwhite list countries”). When assets directly or indirectly owned, are located in “non ‐ white list countries”, the reporting obligation is set at the fair value

In accordance with Circular 230 Disclosure