Italy construction bonus fraud investigations

Italian authorities continue to take legal action against various schemes involving fraudulent construction tax credits. In one instance, the Italian Court of Cassation affirmed the conviction of a construction company owner for aggravated fraud after he falsely declared the start of façade renovation works to obtain the ‘bonus facciate’ tax credit.

In the province of Palermo, the Guardia di Finanza investigated an entrepreneur and an architect for allegedly generating 2.6 million euros in false tax credits. The scheme involved falsely certifying completed construction works for over 100 subjects, including condominiums, using inflated estimates or invoices for work that was never performed. The Court of Auditors of the Sicilian Region ordered the seizure of assets worth 1.6 million euros, including properties, vehicles, and luxury items.

In Siena, authorities uncovered a separate scheme involving approximately 1.18 million euros in fake invoices related to the ‘facade bonus’ incentive. Investigations revealed that two construction companies engaged in non-existent transactions during 2021. One company reportedly lacked the employees, equipment, and materials necessary for renovation work, yet generated significant revenue while declaring a minimal loss. Consequently, the Guardia di Finanza carried out a preventive seizure of 438,240 euros from three individuals belonging to the same family.