Stop cash: fines of € 5,000, even for the money as a gift!

The new indiscretion that saw the possible introduction of new prohibitions and controls by the Italian government on the use of cash was now in the air, which it could thus have revolutionized the cash limit, currently already set at 2,000 euros.

So today it is now official the news of the new threshold that will come into effect starting from January 1st next year, therefore in the year 2022, which will see the reduction of limits and the approval of new controls, sanctions and prohibitions, in order to combat the phenomenon of tax evasion.

It is, therefore, a new squeeze on the use of cash that should thus go inencourage the greater predisposition of Italian citizens to the use of electronic and traceable systems, in cases where items or services are purchased from a shop or business.

In this way, in order to be able to reduce and limit as much as possible the practices implemented by subjects who intend to tax evade the State, the Italian Government has decided to move in a clear and radical direction: that of to limit the use of cash more and moreti by the entire population residing on the national territory.

This decision had also already been anticipated following the publication and transmission by five European Union countries of the so-called position paper, aimed at highlighting before the European Commission the serious problems that could arise due to the continuous progress of practices relating to ‘tax evasion.

In this regard, the following article will not only illustrate and explore all the news that will interest you the use of cash and payment limits, but important data related to the phenomenon of tax evasion will also be resumed, so much so as to make this aspect one of the main aspects that is able to negatively affect public debt, which therefore the Draghi government cannot fail to take into consideration.

All the news on the use of the 2022 cash limit

The news concerning the approval of the new limit on the use of cash which will thus modify the current legislation introduced following the publication in the Official Gazette of decree number 124 dating back to the year 2019.

In this regard, the executive team currently led by Prime Minister Mario Draghi, in order to encourage the use of so-called digital transactions within the national territory and the entire Italian population, has decided to make notes the new provisions regarding the new limits on the use of cash.

Therefore, starting from January 1 of the year 2022, the maximum threshold currently set for the use and exchange of cash between citizens will be automatically halved, which will thus pass from the limit of 2,000 euros. which will remain valid until December 31, 2021, at only one thousand euros.

How will the cash limit change in 2022?

The news regarding a new stop in the use of cash starting from January 1st of next year was already in the air, as several times the Government headed by the current Prime Minister Mario Draghi had expressed himself in about the need to limit the use of cash to a minimum.

At the same time, Prime Minister Draghi’s goal is to reduce the use of cash as much as possible, thus increasing the use of electronic or traceable payment systems.

In this regard, the innovations that will be introduced starting from next January 1st 2022, will mainly concern the threshold linked to the exchange of cash for amounts exceeding € 999.99, both in cases where it is a matter of a transfer of money between legal persons and between individuals.

In this sense, for all those who intend to make a money transfer or an economic transaction whose amount appears to be higher than the cash limit of 1,000 euros, it will therefore be necessary to no longer refer to bearer coins, banknotes or securities, but to alternative instruments.

In this context, therefore, alternative instruments are understood to be those payment systems of a traceable and electronic type, such as for example bank transfers, checks, direct debits, internet payment services (so-called e-payments), or payment services available on portable devices (also known as m-payments), as well as any other payment card.

For which operations the 2022 cash limit applies

As also underlined by the Bank of Italy, this is a decision that will go to substantially and radically affect the use of cash and its limitations.

In this regard, it is necessary to underline that it will be possible to continue to deliver the money in cash as well as bearer securities in euros or in foreign currency to another subject, only by respecting the limits referring to one thousand euros, to regardless of the type of money transition.

In this sense, the the same limitations and any sanctions in cases where the cash limit thresholds will not be respected, even when it comes to donations or sums that have been given as gifts by relatives or friends in favor of other people.

In this scenario, it must be emphasized that the cash use limit set at the threshold of 1,000 euros will be applied to any single payment or fractional transactions that are however linked to each other.

Specifically, it must also be evident that, with the term fractional operations, all those operations that are carried out are indicated effectively over a period of seven days.

The only exception, therefore, allapplication of the cash limit, is represented by that category of payments and withdrawals that are made through banks, as well as electronic money institutions or Poste Italiane.

What risks those who exceed the 2022 cash limit

In order to better combat the phenomenon of tax evasion, the team of the Italian executive headed by the current President of the Council of Ministers, Mario Draghi, has decided to make some new provisions also with regard to the overview of sanctions and risks, in cases where the cash limit of 1,000 euros is exceeded.

In this regard, in cases where citizens still decide to pay in cash a sum of money with a value higher than that permitted by law, which will correspond to one thousand euros, these will expose themselves to the risk of a dispute by the Revenue Agency.

In this sense, in situations in which the citizen finds himself facing penalties provided for in the anti-money laundering legislation, he will therefore risk being involved in administrative and pecuniary penalties of very high amounts.

Therefore, with regard to transgressions in general, citizens will be required to payment of a fine equal to a minimum amount of 1,000 euros. In cases where it is a question of violations of amounts exceeding 250 thousand euros, the sanction that will be attributed to the subject will start from a minimum amount of 5,000 euros.

Furthermore, in cases in which it is a question of subjects who have decided not to provide the communication regarding the irregularity linked to the cash limit, in this case they will risk having to pay a fine ranging between 3,000 and 15,000 euros.

How the cash limit works today in 2021

After understanding, therefore, what are the actual limitations that will be envisaged regarding the use of cash starting from January 1st of next year, it will also be useful to carry out a brief summary of the cash limit that is currently in effect.

In this regard, according to the provisions of the decree-law number 124 of 2019, a subject will not be able to make a cash transition on the same day. for an amount exceeding the limit set at 2,000 euros.

In this sense, in cases where a subject actually needs to proceed with the purchase of an item or of a service, the sale price of which is higher than the threshold of 2 thousand euros, in this case, the citizen will still be able to refer to the new electronic payment systems, which allow the tracking of the transaction.

This includes credit cards, postal and bank transfers or any other type of electronic payment, made via portable devices.

It is also necessary to underline that the current legislation in force still allows the citizen to request the payment in installments for items or services made through use in cash.

At the same time, it is necessary to make a further clarification with regard to foreign citizens, or those subjects who do not appear to be resident in the national territory, which may exceed the limit of 2,000 euros, but only in some specific cases.

The troubling data on tax evasion and cash limit goals

The decision to combat tax evasion through the measures also linked to the limit of the use of cash by the Government of Mario Draghi is configured as the only solution for try to minimize the evasion of the FISCO by the crafty ones who wish not to declare all actual income to the state.

In fact, according to some data released by the Mestre CGIA, it would seem that tax evasion on the national territory has actually reached the threshold of almost 110 billion euros. However, even in Europe the situation is not the best, so much so that it has prompted the European Commission to start the termination relating to the production of the famous 500 euro banknotes.

Aspiring freelance journalist and social media manager, born in 1995.
I was born on the beautiful island of Capri and I graduated in Organization and Marketing for Business Communication from La Sapienza of Rome. My greatest passions are writing and digital marketing. It was precisely these that brought me today to be part of the Trend-online team of editors and to collaborate as a communication professional with various Italian companies.

My motto is? “Be the change you want to see in the world”.

PREV General Electric goes into three: health, energy and aeronautics
NEXT Shiba Inu Coin quotato su CoinSmart