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Understand the Priorities for the Tax refund

by Harold Washington
September 17, 2020
in Finance
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Understand the Priorities for the Tax refund
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Direct taxes were coordinated (1862) with those on transfers free of charge and for consideration. In the former, which were already withdrawn in all the ancient states, except in the Kingdom of the two, a proportional rate was applied for what concerns the amount of the individual succession shares, and progressive in inverse correlation of the proximity of the kinship. From the beginning, the tax affected not only outsiders and the collateral line, but also the direct line, although the latter was in the small proportion of 0.50%.

The Mortality Tax

At the same time, the mortality tax was also instituted, which replaced that on inheritances for the assets of non-profit, lay and ecclesiastical entities, which would otherwise have been exempt from inheritance tax. Taxes on transfers for consideration were also reorganized in our Kingdom in 1862, and thus there were registration taxes, stamp duties, mortgage taxes, and taxes on industrial and insurance companies and those on the issuance of bank notes.

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Registration fees affected, and do affect, civil and judicial acts by which a right is created, declared, transferred, modified or extinguished. They were also subject to the stamp the deeds which subsequently had to be registered, as well as other documents attesting to those exchanges which, given the speed and frequency with which they are carried out, could not be registered, as p. ex. foreign exchange mortgages, exchanges of products between industrialists and merchants or traders among themselves, entrance tickets to theaters and other public performances, railway tickets, etc. The use of the tax refund estimator is very important in this case.

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But, from the very beginning of our tax system, those which provided the state treasury with an income somewhat greater than direct taxes and those on transfers, considered individually, were consumption taxes.

  • In the few years that elapsed from 1859 to 1867, the tax system on consumption was ordered on the basis of customs duties, consumer duties, manufacturing taxes and property rights. As far as customs duties are concerned, the tariff in force in Piedmont was extended throughout Italy, which, as regards importation, was inspired by the liberal opinions, predominant in that state, and contained only three export duties (on bottled wines , on brandy and olive oils).
  • As for consumer duties, they were maintained in all the municipalities of the state, of which some, the largest, were declared closed to their effects, while others, the minor ones, but far superior in number, were declared open. The government tax on the milling of cereals, a form of taxation which is linked to the history of serious riots and no less severe repressions, was introduced in 1868 and abolished in 1879 for lower cereals and in 1884 for wheat.

Conclusion

The manufacturing taxes, as they were ordered in 1862-64, only affected the production of beer, gaseous waters, as well as spirits, but only when these were produced in closed municipalities. The transformation of the tax on spirits into a real manufacturing tax dates back to 1870, and the institution of the manufacturing tax on sugars dates back to 1877 only.

Harold Washington
Harold Washington
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