Italian Finance Minister Vittorio Grilli, who has led a crackdown on tax evasion, bought his Rome apartment partly with funds from a Channel Islands account and then avoided sales tax on renovations by paying cash for about half the costs, Il Sole 24 Ore newspaper reported, citing documents it obtained.
Italian Prime Minister Mario Monti’s Cabinet approved the payment of 40 billion euros ($52 billion) owed by the government to private companies in an effort to spur a recovery in the recession-hit country.
Italian Finance Minister Vittorio Grilli, appointed by Prime Minister Mario Monti to spearhead a drive to prevent tax evasion, purchased his 14-room home in Rome at a price less than the reported market values in his neighborhood and dwarfed by his mortgage, according to records of the 2004 transaction.
Italian Finance Minister Vittorio Grilli, who declared a purchase price for his Rome apartment that was about half its assessed value, said the mismatch is due to a separate payment he made to a relative of the seller for earlier renovations of the 14-room home.
Italian Finance Minister Vittorio Grilli, whose 14-month tenure has been marked by tax increases and recession, said austerity was the only option as bondholders must take priority in a financial crisis.
Italy’s credit rating was cut one level by Fitch Ratings as an inconclusive election in February produced political paralysis that threatens the country’s ability to respond to a recession and the European debt crisis.
Regulatory oversight of Banca Monte Paschi di Siena SpA was “continuous and thorough” and the bank remains solid even with a capital shortfall and possible losses linked to undisclosed structured finance deals, Finance Minister Vittorio Grilli said.