Do the Rich Pay Taxes? Italy Tells All
ROME — Many Italians’ attitude toward taxes runs something like this: Why should I pay if no one else does? Evasion is so common that landlords often demand two leases: one private with the actual amount expected, the other far lower and submitted to the authorities. Both, bafflingly, are vetted by lawyers.
But for a few hours this week, all was laid bare with a technological bluntness unaccustomed here. The departing government of Romano Prodi, the center-left prime minister, on Wednesday posted the returns for all 40 million Italians who paid taxes in 2005.
The Web site was instantly jammed to the point that few could actually see the data, but enough leaked out, with people spying on their neighbors and the rich and famous alike. By some accounts, the fashion designer Giorgio Armani paid the most, 19 million euros ($29 million) on 44 million euros ($68 million) in income.
Some advocacy groups praised the site as a rare exercise in transparency. But many more were outraged, and the site was closed down a few hours after it went public.
“It’s madness,” said Beppe Grillo, a comic whose antigovernment tirades have proved financially profitable. Mr. Grillo, whose returns were among those listed, told the ANSA news agency that the government had “given criminals information about the income and address of taxpayers.”
“This is going to make paying taxes very dangerous,” he said. “It will be much safer and less risky to just evade taxes and pay the fine if you’re caught.”
His final judgment: The decision was made by “imbeciles.”
But Vincenzo Visco, the departing deputy finance minister, said it was all part of a government effort to crack down on tax evasion. The site was supposed to go public in January, he said, but was delayed because of elections, won last month by Silvio Berlusconi, who had twice been prime minister.
“All I did was follow the law,” Mr. Visco said.
During his two years in office, Mr. Prodi helped ease Italy’s dire financial situation by improving compliance with tax laws.
This week he was officially replaced by Mr. Berlusconi, who once said he understood why Italians evaded taxes, given how little was given back to them in services. But, in campaigning, Mr. Berlusconi said he, too, would crack down on tax cheats.
Though the official tax site went dead, it lives on virtually. Italian newspapers reported Thursday that it had been copied — and posted — as grist for curiosity and the next stage for tax compliance here.