The Scrapping Quater, part of the plan for the simplified definition of tax debts, has obtained an extension for the payment of the fifth installment, moved to September 23, 2024. This measure allows taxpayers to settle their tax debts without having to pay penalties or default interest, provided that they meet the established deadlines
.
In this detailed guide, we’ll look at what the Quater Scrapping is, which debts fall under the measure, and how the installment payment plan works.
Table of Contents:
What is Scrapping Quater
The Quater Scrapping, introduced in 2023, is an opportunity for taxpayers to settle tax debts notified between January 1, 2000 and June 30, 2022. The measure makes it possible to pay off the debt with a significant reduction in penalties and default interest. Taxpayers can choose to pay in a single installment or to defer the amount up to a maximum of
18 installments.
This subsidized definition has been designed to allow citizens to settle outstanding debts with the IRS in a subsidized manner, benefiting from a reduction in the tax burden.
Extension of the Fifth Instalment to September 23, 2024
The deadline for paying the fifth installment of the Quater Scrapping was originally set at 31 July 2024, but has been extended to 15 September 2024. Thanks to a five-day grace period, payments made by September 23, 2024 will still be considered valid
.
This extension, announced by the Ministry of Economy and Finance, allows taxpayers to maintain the benefits of the subsidized definition, as long as the payment is made by the new established date.
What is included in the Quater 2024 Scrapping
The
Quater Scrapping includes tax debts exceeding 1,000 euros, registered in the role and notified to taxpayers from January 1, 2000 to June 30, 2022. Debts that can be healed include tax records for local taxes and taxes, social security contributions and other tax
liabilities.
Thanks to this procedure, taxpayers can benefit from the cancellation of penalties, default interest and payment by the Collection Agent, reducing the amount to be paid.
How Quater Scrapping Works
The taxpayer who joined the Quater Scrapping had to submit an electronic declaration of membership by 30 June 2023. Subsequently, the Revenue-Collection Agency sent a communication with the outcome of the application and the list of the ‘scrapped’ debts with the relative amount to be paid.
Taxpayers can choose to pay in a single installment or divide the amount up to a maximum of 18 installments, with deadlines distributed between February, May, July and November of each year. Each installment must be paid within the established deadlines, otherwise you risk losing the benefits of scrapping
.
Installments and Payments: What Happens If You Miss an Installment
If the taxpayer does not pay an installment or makes a late payment more than five days of grace, it automatically lapses from Scrapping Quater. In this case, all payments made up to that point will be considered as down payments and the debt will once again be subject to penalties and
full interest.
From November 1, 2023, for installment payments, interest will be applied at a rate of 2%. The extension may extend up to a maximum of 18 installments, with fixed deadlines for each year
.
Cargoes Excluded from Quater Scrapping
Not all types of tax debts are eligible for Scrapping Quater. In fact, the following are excluded
:
- The recovery of state aid declared illegitimate by the European Union.
- Claims deriving from convictions of the Court of Auditors.
- Fines and financial penalties related to criminal proceedings.
- Debts related to the European Union’s ‘traditional own resources’ and to VAT on imports.
In addition, the charges linked to private social security institutions could be included only after a resolution of the entity to which they belong, notified to the Revenue-Collection Agency.
How to Join and Pay for Scrapping Quater
For taxpayers who have joined Scrapping Quater, it is possible to make payments through various channels, including:
- Authorized banks and ATM machines.
- Post offices.
- Tobacco shops and Sisal and Lottomatica circuits.
- Online platforms through the Revenue-Collection Agency website or the Equiclick App.
In addition, taxpayers can use the ContiTu service to choose which alerts or folders to correct with the simplified definition and receive the related payment forms via e-mail.
The Quater Scrapping represents an important opportunity for taxpayers with tax debts to regularize their position, benefiting from the reduction of penalties and interest. Thanks to the extension of the deadline for the fifth installment to September 23, 2024, taxpayers still have time to take advantage of this benefit. However, it is essential to meet the deadlines so as not to lose the benefits of the subsidized definition
.
