Tax to be at forefront as Mario Monti takes Italy’s top job

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Tax to be at forefront as Mario Monti takes Italy’s top job

u8-mario-monti.jpg

Mario Monti, Italy’s new Prime Minister, is likely to place taxation high on his government’s agenda and will put his experience as former European Commissioner for tax to good use.

From his background at the Commission, and his comments to International Tax Review last year, tax reform is set be a defining element of his premiership.

Monti delivered an influential report last year on how to complete the EU single market including a number of proposals for taxation reforms such as further work on the elimination of tax barriers, the reform of VAT rules in a single market-friendly way, the development of environmental taxation, the establishment of a tax policy group chaired by the commissioner for taxation, and a common definition of the corporate tax base.

Since the report was published, the Commission has established a tax policy group, come forward with proposals for environmental tax reform and for a common consolidated corporate tax base (CCCTB). Its proposals on the future of VAT are expected next month.

When International Tax Review spoke to Monti after he published his report, he was enthusiastic about progress on the CCCTB and his appointment as the new Italian Prime Minister could give a much needed boost to the politically fraught proposal.

“There are difficulties, but the Commission in its previous term - probably also because of the Irish referendum - has probably not pushed very far the exploration with member states,” Monti said. “In my consultations to prepare the report, I have found considerable appetite for CCCTB in the business community and support by several member states. I believe that, if this topic is framed into a broader tax policy discussion and the Commission shows full commitment, it should be possible to make progress.”

Monti said that he was keen for the Commission to “keep a unitary, holistic approach, linking the measures to relaunch the single market”.

Monti’s own approach to the Italian premiership will become clearer as he begins to work with his new cabinet formed today, but it is unlikely the task of rescuing the country’s ailing economy can be achieved without tax reform and in him, Italy has found a much safer pair of hands than Berlusconi.

more across site & shared bottom lb ros

More from across our site

MNEs are increasingly using algorithmic tools in TP. Sahasranshu Dash argues that data ethics should therefore plug directly into the TP design process
The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Rafael Tena tells ITR about the ‘crazy’ Mexican market, ditching the hourly rate, and refusing to grow his fledgling firm in an ‘unstructured way’
It should be easy for advisers to be transparent about costs, Brown Rudnick partner Matthew Sharp said in response to exclusive ITR in-house data
The sprawling legislation phases out Joe Biden-era green tax incentives for businesses; in other news, the UK will reportedly maintain its DST despite US pressure
New French legislation should create a more consistent legal environment for taxing gains from management packages, say Bruno Knadjian and Sylvain Piémont of Herbert Smith Freehills Kramer
Gift this article