Legislation: Law 17.01.2000

Law 17 January 2000, n. 7
(Published in Official Gazette no. 16 of 21 January 2000)
New discipline of the gold market, even in the implementation of Directive 98/80/EC of the Council of 12 October 1998

Article 1
(Gold Trading)

1. For the purposes of this Act the term "gold" means:

  • investment gold, meaning that the gold in the form of ingots or wafer of weights accepted by the bullion market, but still greater than 1 gram, of a purity equal to or greater than 995 thousandths, whether or not represented by securities; gold coins of a purity equal to or greater than 900 thousandths and minted after 1800, which are or have been legal tender in the country of origin, normally sold at a price that does not exceed 80 per cent of the open market value 'gold contained in them, including the list drawn up by the Commission of the European Communities and published annually in the Official Journal of the European Communities, C series, as well as coins with the same characteristics, although not included in the above list, by decree of the Minister of Treasury, Budget and Economic Planning established the method of transmission to the Commission of the European Communities of the information about the currencies traded in the Italian State which meet the above criteria;
  • the gold material other than that referred to in point a), for mainly industrial use, both in the form of semi-finished products of a purity equal to or greater than 325 thousandths, or in any other form and purity.

2. Anyone who has or makes the transfer of gold to or from foreign countries, which is the trade of gold in the national territory or other transactions in gold even free of charge, has the obligation to declare the transaction Italian Foreign Exchange Office, if the value of the same result for an amount equal to or greater than 20 million lire. To the reporting requirement are also required professional operators referred to in paragraph 3, either acting on their own or working on behalf of third parties. This provision shall be excluded from the operations carried out by the Bank of Italy.

3. The exercise on a professional trade of gold, for their own account or on behalf of third parties, it can be done by banks and, upon notice to the Italian foreign exchange by persons who meet the following requirements:

  • legal form of a corporation, or a partnership limited by shares or limited liability company, or cooperative society, having in each case fully paid up capital of not less than the minimum amount required for the Corporation;
  • the social that involves the trading of gold;
  • possession, on behalf of the shareholders, directors and employees who perform functions of technical and commercial management, of good repute laid down in Articles 108, 109 and 161, paragraph 2, of the Consolidated Law on Banking , enacted by Legislative Decree 1 September 1993, n. 385.

4. They are, however, excluded from the arrangements referred to in paragraph 3 operators who purchase gold in order to allocate it to their industrial processing or craft or to entrust solely for processing, to a holder of the identification mark referred to in Legislative Decree 22 May 1999 n. 251.

5. The data contained in the declarations referred to in paragraph 2 shall be made available to the competent authorities for tax purposes, money laundering, order and public safety, in accordance with applicable laws and procedures agreed with the contracting authority.

6. The contents and methods of carrying out the declaration provided for in paragraph 2 shall be defined by a decision of the Italian Exchange Office to be published in the Official Gazette of the Italian Republic. The Italian Foreign Exchange Office agrees with the competent authorities in the mode of transmission of the data contained in the declaration.

7. The verification of the requirements of paragraph 3 is assigned for intermediaries other than banks, the Italian Foreign Exchange Office.

8. The Italian Foreign Exchange Office fixed, consistent with the standards in use in major international markets, the standards to be met by the raw gold to use the title of "good delivery" in the domestic market.

9. The Italian Foreign Exchange Office:

  • on the basis of rates and preset modes certify the eligibility of a special provision to the "good delivery" of companies who request them and they are in a position, on the level of technical capacity, reliability and good repute, to comply with the standard referred to in paragraph 8;
  • supervises the permanence of the conditions of certification, in the absence of which makes the revocation of the provision;
  • identifies on the basis of predefined criteria the parties, public or private, from which may be issued to interested companies the claims necessary technical and product certification.

10. Remain subject to the existing provisions in the area of securities and trademarks of precious metals.

11. With the exception of the Bank of Italy, the Italian Foreign Exchange Office and banks continue to apply the existing provisions of law of public safety in relation to trade in gold.

Article 2
(Financial transactions in gold)

1. The exercise on a professional activity relating to financial transactions on gold, whether or not represented by securities, including gold coins, is reserved to banks and intermediaries authorized, pursuant to Article 18 of the Consolidated provisions on financial intermediation, issued by Legislative Decree 24 February 1998, n. 58, to the performance of investment services.

2. When the operations referred to in paragraph 1 give rise to the physical delivery of gold, the same operations are subject to the reporting referred to in Article 1, paragraph 2.

Article 3
(Tax provisions)

1. Article 4, fifth paragraph, second sentence, of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, the words "to which they are parties, the Bank of Italy, the Italian Foreign Exchange Office or the agent banks" are replaced by the following: "by the Bank of Italy and the Italian Exchange Office ".

2. Exempted transactions referred to in Article 10, Number 3) of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, are to be considered in each case the provision of services. It is understood the tax treatment already applied and you do not rise to the repayment of taxes paid nor is it permitted the change referred to in Article 26 of the aforementioned Decree of the President of the Republic no. 633 of 1972, as amended.

3. Article 10 of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, shall be amended as follows:

  • the number 9), the words "made in relation to reports which they are parties, the Bank of Italy and the Italian Exchange Office or the agent banks in accordance with Article 4, last paragraph, of this Decree" shall be replaced by the following: "made in connection with transactions entered into by the Bank of Italy and the Italian Exchange Office, pursuant to Article 4, the fifth paragraph of this decree";
  • the number 11) is replaced by the following:
    "11) the supply of investment gold, including that represented by gold certificates, even unallocated or traded on gold accounts, with the exception of those carried out by persons who produce investment gold or transform gold into investment gold , who have opted, in the manner and within the prescribed by the Decree of the President of the Republic November 10, 1997, n. 442, also in relation to each sale, for the purposes of charging, the operations provided for in Article 81 paragraph 1, letters c-c), and c-d) of the Consolidated Law on income tax, approved by Decree of the President of the Republic on 22 December 1986, no. 917, as amended, refer to investment, brokerage fees related to previous operations. If the seller has opted for the application of tax, a similar option may be exercised for its intermediation services. For gold investment means:
  • gold in the form of a bar or a wafer of weights accepted by the bullion market, but still greater than 1 gram, of a purity equal to or greater than 995 thousandths, whether or not represented by certificates;
  • the gold coins of a purity equal to or greater than 900 thousandths and minted after 1800, which are or have been legal tender in the country of origin, normally sold at a price that does not exceed 80 percent of the open market value gold contained in, included in the list prepared by the Commission of the European Communities and published annually in the Official Journal of the European Communities, C series, based on the information given by the Ministry of the Treasury, Budget and Economic Planning, as well as coins having the same characteristics, even if not included in that list. ";

4. Article 17 of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, is added at the end the following paragraph:
"Notwithstanding the first subparagraph, the taxable supplies of investment gold as defined in Article 10, number 11), as well as for the supply of gold material and semi-finished products for those of a purity equal to or greater than 325 thousandths, the payment of the transferee is required if the taxable person within the territory of the State. invoice issued by the seller without charge tax, in compliance with the provisions laid down in Articles 21 and following, and with the ' indication of the standard referred to in this paragraph, must be supplemented by the transferee with an indication of the rate and the tax thereon and shall be entered in the register referred to in Articles 23 or 24 within the month of receipt or subsequently, but in any case within fifteen days of receipt and with reference to the relevant month, the same document, for the purposes of deduction, is also recorded in the register referred to in Article 25. "

5. Article 19 of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, shall be amended as follows:

  • paragraph 3, letter d) is replaced by the following:
    "D) the supply referred to in Article 10, Number 11), carried out by persons who produce investment gold or transform gold into investment gold;"
  • after paragraph 5 is added as follows:
    "5-a. For subjects other than those referred to in subparagraph d) of paragraph 3 of the limitation of the deduction referred to in the preceding paragraphs does not operate in respect of tax charged, payable or paid for purchases, including intra-community, of gold for investment, for purchases, including intra-community, and for imports of gold other than investment destined to be transformed into investment gold by the subjects themselves or on their behalf, as well as for services consisting in a change of form, weight or purity of gold including investment gold. "

6. Article 22, first paragraph, number 6) of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, the words "fall under the actual making of the companies that" are deleted.

7. Article 30, third paragraph, letter a) of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, after the words: "and imports" are added as follows: ", counting for this purpose also the operations carried out in accordance with Article 17, paragraph five."

8. Article 68 of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, shall be amended as follows:

  • the letter b) is replaced by the following:
    "B) the importation of free samples of low value, specially marked;"
  • the letter c) is replaced by the following:
    "C) any other final importation of goods whose supply is exempt from or not is subject to, under Article 72. For transactions concerning investment gold as defined in Article 10, number 11), 'exemption applies policies where the requirements stated therein resulting from conformity declaration rendered, in the customs declaration by the person making the supply; ".

9. Article 70 of the Decree of the President of the Republic of 26 October 1972, n. 633, as amended, is added at the end the following paragraph:
"For the import of gold material, semi-finished products as well as of a purity equal to or greater than 325 thousandths by taxable persons in the territory of the State tax, certified and settled in the customs declaration, according to statement made in this headquarters, is performed in accordance with the provisions of Title II and for this purpose the customs document must be noted, with reference to the month of issue of the document itself, in the records referred to in Articles 23 or 24 as well as to the effects of the deduction, in the register referred to in Article 25. "

10. For supplies and imports of silver in ingots or grains, of a purity equal to or greater than 900 thousandths, the provisions referred to in Articles 17, paragraph five, and 70, last paragraph, of Presidential Decree of 26 October 1972, no. 633, as amended by this article.

11. The provisions of Articles 10, Number 11), and 68, letter b) of the Decree of the President of the Republic of 26 October 1972, n. 633 shall be deemed to apply to transactions involving gold leaf if made before the date of entry into force of this Act. (1)

12. With regard to accounting, as well as the manner and terms of payment of taxes, the provisions of Article 3, paragraph 136, of 23 December 1996, n. 662.

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Notes

(1) Paragraph amended by art. 42, Law 21 November 2000, n. 342

Article 4
(Sanctions)

1. Anyone who carries out the activity referred to in Article 1, paragraph 3, without giving notice to the Italian Foreign Exchange, or in the absence of the requirements, shall be punished with imprisonment from six months to four years and a fine of LIT four million and twenty million lire. The same punishment any person performing the activities provided for in Article 2, paragraph 1, without being legitimized.

2. The violations of the declaration referred to in Article 1, paragraph 2, shall be punished by a fine ranging from a minimum of 10 percent to a maximum of 40 percent of the value traded. For the investigation of violations provided for in this paragraph, and for the imposition of sanctions, the provisions of the consolidated law on currency matters, approved by Presidential Decree of 31 March 1988, n. 148, as amended.

3. Shall apply, mutatis mutandis, the provisions of the Law of 24 November 1981, n. 689, as amended. There shall be a reduced payment provided for in Article 16 of this Law.

Article 5
(Final and Transitional Provisions)

1. In the period of initial application of this Act, the requirements referred to in points a) b) of paragraph 3 of Article 1 are not required for authorized entities for at least five years before the date of entry into force of this Act pursuant to ' Article 15 of the consolidated law on currency matters, approved by Presidential Decree of 31 March 1988, n. 148, and showing that use of the authorization for a minimum annual fee of 30 kilograms. These persons have an obligation to comply, within three years from the date of entry into force of this Act, the provisions of paragraph 3 of Article 1 also with regard to the requirements referred to in subparagraphs a) and b) of that subsection.

2. Those authorized for less than five years, or those who have not used the authorization for the minimum expected, have an obligation to communicate the Italian Foreign Exchange Office plans to carry out the activities referred to in Article 1 , paragraph 3, and to comply with the provisions referred to in that article 1, paragraph 3, within one year from the date of entry into force of this Act.

3. The Italian Foreign Exchange Office provides for the verification of the requirements laid down in paragraphs 1 and 2.

4. The threshold amount provided for in Article 1, paragraph 2, of this law can be changed with the measure referred to in Article 4, paragraph 3, letter a) of the Decree-Law of 3 May 1991, n. 143, converted, with amendments, by Law of 5 July 1991, n. 197.

Article 6
(Repeal of Provisions)

1. Are hereby repealed Article 2, third paragraph, of the deputy legislative decree 17 May 1945, n. 331, Article 1, paragraph 1, letter e) of the Law of 26 September 1986, n. 599, and Article 15, paragraphs 3 and 4 of the consolidated law on currency matters, approved by Decree of the President of the Republic March 31, 1988, n. 148.