Limit on the use of cash
The Fiscal Decree 2020 (art. 18 of Legislative Decree no. 124/2019) for the purpose of:
– counter tax evasion;
– discourage the use of cash in favor of electronic money;
The decree approved lowering the limit on the use of cash starting on July 1st 2020 until December 31st 2021, from € 3,000 to € 2,000. Subsequently, from January 1st 2022, the threshold will be further reduced from € 2,000 to € 1,000.
The prohibition refers to the transfer of cash and securities in euro or foreign currency, whether made in any capacity between different entities, individuals or legal entities. This prohibition also applies when the transfer is made in installments.
The tax decree also intervenes on the discipline of sanctions, providing for the application of the pecuniary administrative sanction:
– from €3.000 to €50.000 for violations committed and contested until 30/06/2020;
– from € 2.000 to € 50.000 for violations committed and contested from 01/07/2020 to 31/12/2021;
– from € 1.000 to € 50.000 for violations committed and contested from 01/01/2022.
The Ministry of Economy and Finance clarified that:
– there is no violation if the transfer is the result of the algebraic sum of a plurality of substantially autonomous charges, such as to be considered distinct and differentiated operations, or if a plurality of distinct payments is inherent to the operation itself, or is the result of a prior negotiation agreement between the parties;
– both the person who gives money and the person who receives it are involved in the violation, as the latter also contributes to evading and frustrating the purpose of the law by his conduct.