The Italian Tax Return Campaign Is a Money-Making Business
Do you do the tax return in your country? In Italy, it is a real business that involves thousands of people every year!
What Is the Tax Return?
The tax return is a module in which you declare some expenses you had during the past year. Individuals, freelancers, and companies can do it, everyone with a distinct form to fill.
I want to focus on the tax return form for natural persons.
The form is called 730 and contains information about your residence, property (terrains or buildings), incomes such as rent or employment income, a detailed list of expenses (medical, school, sport, transportation), a section dedicated to housing renovation and more.
Who Can Fill the Tax Return Module?
Starting a few years ago, the Revenue Agency offers the possibility to all citizens to fill in on their own tax return module. It already includes some information provided by employers, doctors, and companies who declared a person sustain those expenses by adding that person fiscal code to their documents.
But tax return isn’t just a bunch of numbers to put in a box.
There are rules to follow that change almost every year. The documents must be eligible and done in a proper way to be deducted. This is why accountants and unions do courses for people like you and me to take. After the course, you will be able to complete the tax return correctly and work as a tax consultant during the annual campaign.
The Tax Return Courses
My first tax return campaign was in 2014; I had a little bit of knowledge about payroll and all the tuition I’ve been given at that time was a three-day course and a heavy book full of rules.
My second experience was in 2019, but this time was completely different. A company connected to a union engages me to do the first course of about three weeks.
Passed that, it was easy since I already had an experience, I did another three- month course (it was just three days a week). I took the final test, passed it, and I was qualified to do the job. Yes, to do this job, you need to be qualified. Therefore you must do the training or an update course before starting.
The courses are organized by a branch of a temporary agency dedicated to tutoring. Many temporary agencies provide this service.
These agencies offer a free class to the students, mostly adults who can’t find a job or young people approaching the world of work for the first time. On the other hand, they gain money from funds established by a government institution or Community funds. The second part involved in these courses are the unions, which offer teachers, earn part of the money and form their future employees.
Employees of the temporary agency, actually!
How Many People Are Involved in the Tax Return Campaign?
I’m not sure about how many people are hired in Italy only for the campaign. I tried to find information about it but I didn’t find a specific number.
Based on my experience, one of the biggest union of my city hires about 50 people for 3–4 months to handle the job as receptionist and tax return clerk. I genuinely believe that there are a few thousand people involved in this seasonal job all across Italy.
How Much Does a Tax Return Form Costs?
Some people must do the tax return to pay taxes they didn’t pay during the year; some people do it because they get money back. Usually, it is 19% of the money for medical, school, vet, kids sports, mortgage interests, public transport pass and others. A deduction of the income for other types of expenses like supplementary pension and donations. 50% or more back for housing renovation.
A single tax return module can cost 70€ or more, depends on the type and number of expenses, nonetheless the time needed to revise everything and scan the documents. I’ve seen people spending 200€ for a tax return module of husband and wife.
I tell you something else; the Revenue Agency pays tax returns companies up to 18.30€ for each tax return module they fill.
The Italian Tax Return Campaign Is a Money-Making Business
Lets recap! Temporary agencies and companies that arrange courses for tax return gain money from national and international funds for adult tuition.
Than companies affiliate to unions or accountants, C.A.F. (fiscal assistance center), take money from people to fill the tax return form.
Eventually, they also gain a small fee from the Revenue Agency.
Want to Work as a Tax Return Consultant?
To work as a tax return consultant or clerk, you must do a habilitation course and update training every year. But this isn’t enough.
You need the program to fill the form and send it to the Revenue Agency.
If you don’t work as an employee for a company that does this job, you must be supervised by an accountant.
The tax return is my job from May to July. Lucky me, I do it without the client staring at me from the other side of the desktop.
The accountant I work for collects all the documents, I divide them, organize, scan, and fill in the form at the computer. Then she checks with me the job. We send the modules to the Revenue Agency.
People will pay their taxes or get a refund through their employer or the Revenue Agency itself.
It’s not a difficult job, but there is a lot of information to remember, and if you make a mistake, you must pay a fine.
