Italy investigates PV companies for €60 million tax evasion and €33 million subsidy fraud – SPE

By pv magazine Italy

The Italian law enforcement agency responsible for financial crimes, tax evasion, customs enforcement and economic fraud – Guardia di Finanza (GDF) – has identified seven photovoltaic companies, based in Trentino, controlled by an unnamed German operator, which allegedly evaded more than 60 million euros in tax revenues and unlawfully obtained more than 33 million euros in incentives from the state energy agency Gestore dei Servizi Energetici (GSE).

According to the GDF, the companies surveyed own photovoltaic installations mainly located in central and southern Italy. The investigation was initially initiated following tax audits at the parent company, which reportedly revealed several irregularities.

The investigators suspect that the companies fictitiously moved their registered office to Trentino solely to benefit from a reduced IRAP tax rate, leading to tax evasion of more than €2 million.

Authorities also found that, in violation of transfer pricing rules, the companies had wrongly deducted costs related to loans granted by the German parent company at artificially high rates, shifting nearly €3 million in profits to a more favorable tax jurisdiction.

The GDF also reviewed incentive applications submitted to the GSE between 2011 and 2024, totaling more than €152 million. They found that more than €33 million had been wrongly received through a subdivision of artificial installations, intended to access higher incentive rates by splitting installations into several smaller units.

The subdivision would also have given access to simplified licensing procedures (PAS), making both construction and commissioning of the plants irregular.

The GSE, informed of the findings, has already recovered almost €500,000.

pv magazine is in contact with the GDF and will provide updates as the investigation progresses.

Popular content