Investment in Italy

4.9Investment in ItalyFailure to keep accounting books and records properlyFailure to keep accounting records is punished by fines ranging from EUR 1,032.00 to EUR7,746.00, which are doubled if the unpaid corporate taxes or VAT amount to more than EUR51,645.69 during any tax year.If the company fails to keep accounting books and records for the purpose of concealingprofits or turnover, the legal representative is liable to criminal prosecution.On incorporation of a company the tax authorities must be informed about the place wherethe accounting books and records are kept and are accessible for tax inspection. Anysubsequent changes must also be notified accordingly.Bookkeeping abroad is allowed on condition that all mandatory accounting books andrecords can promptly be printed out when necessary, i.e. during tax inspections. The originaldocumentation must, however, be stored in Italy until such time as the law allows an opticalsystem of storage.For more information, please contact:Mauro ZaroPartneremail: mzaro@kpmg.it© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.39