On January 1, 2015, significant changes to the compulsory professional indemnity insurance of accountants who render certifications of tax compliance (visto di conformita) entered into force:
- The minimum policy limit has been raised to €3m.
- Compulsory coverage shall now include sanctions, interests and taxes in relation to which the accountant who made a false certification is liable (equal to the amounts that would have collected from the relevant tax payer in the absence of the false certification).
The extension of the scope of coverage is sparking some debate in the market as to the classification of such risk into insurance classes (i.e. whether it is still to be deemed as liability insurance) and how the new provision deals with the prohibition to insure administrative sanctions, set out under the Italian Private Insurance Code.
Accountants need to have their policies updated in compliance with the new provisions in order to continue their certification activity.