Abstract
This chapter analyzes the critical issues and opportunities of a tax model based on social impact. In this perspective, the impact is taken as a substantial legal criterion. Tax concessions to companies and investments, in other words, are not recognized according to the mere purpose of social impact, but on its concrete measurement. In this perspective, it would be possible to conceive the system of tax expenditures, in favor of social entrepreneurship and impact investing, as a form of social investment. A particular focus is dedicated to the specificity of the Italian reform of social enterprise and impact investments. But the analysis also considers more general theoretical aspects such as the impact with the legal principle of “ability to pay” and the protection of competition.
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Notes
- 1.
For an analysis of the most recent legislative recognitions, around the world, see: Bidet, E., & Defourny, J. (Eds.) (2019) Social Enterprise in Asia: Theory, Models and Practice, Routledge, Defourny, J., & Nyssens, M. (2012). “Conceptions of social enterprise in Europe: A comparative perspective with the United States”. In Social enterprises (pp. 71–90). Palgrave Macmillan, London; Esposito, RT (2012). The social enterprise revolution in corporate law: A primer on emerging corporate entities in Europe and the United States for the benefit corporation Wm. & Mary Bus. L. Rev., 4, 639; Terziev, V. (2019). Social entrepreneurship in Bulgaria and Europe. IJASOS-Intern ational E-Journal of Advances in Social Sciences, 5 (14) Wilkinson, C., Medhurst, J., Henry, N., Wihlborg, M., & Braithwaite, B. W. (2014). A map of social enterprises and their ecosystems in Europe: Executive Summary. A report submitted by ICF Consulting Services, European Commission; Filatova, U., Semeryanova, N., Suslova, S., Gabudina, A., & Kopytova, A. (2019). Legal aspect of social entrepreneurship. In E3S Web of Conferences (Vol. 91, p. 08071). EDP Sciences.
- 2.
According to the art. 1, paragraph 1, of Legislative Decree 3 July 2017, n. 112: “Possono acquisire la qualifica di impresa sociale tutti gli enti privati, inclusi quelli costituiti nelle forme di cui al libro V del codice civile, che, in conformità alle disposizioni del presente decreto, esercitano in via stabile e principale un’attività d’impresa di interesse generale, senza scopo di lucro e per finalità civiche, solidaristiche e di utilità sociale, adottando modalità di gestione responsabili e trasparenti e favorendo il più ampio coinvolgimento dei lavoratori, degli utenti e di altri soggetti interessati alle loro attività”. According to the art. 18, paragraph 1: “Non concorrono alla formazione del reddito imponibile delle imprese sociali le somme destinate... ad apposite riserve ai sensi dell’articolo 3, commi 1 e 2.”. According to the art. 18, paragraphs 3 and 4: “3. Dall’imposta lorda sul reddito delle persone fisiche si detrae un importo pari al trenta per cento della somma investita, successivamente alla data di entrata in vigore del presente decreto, dal contribuente nel capitale sociale di una o più società, incluse società cooperative, che abbiano acquisito la qualifica di impresa sociale da non più di cinque anni. L’ammontare, in tutto o in parte, non detraibile nel periodo d’imposta di riferimento può essere portato in detrazione dall’imposta sul reddito delle persone fisiche nei periodi d’imposta successivi, ma non oltre il terzo. L’investimento massimo detraibile non può eccedere, in ciascun periodo d’imposta, l’importo di euro 1.000.000 e deve essere mantenuto per almeno cinque anni. L’eventuale cessione, anche parziale, dell’investimento prima del decorso di tale termine, comporta la decadenza dal beneficio e l’obbligo per il contribuente di restituire l’importo detratto, unitamente agli interessi legali. 4. Non concorre alla formazione del reddito dei soggetti passivi dell’imposta sul reddito delle società, il trenta per cento della somma investita, successivamente alla data di entrata in vigore del presente decreto, nel capitale sociale di una o più società, incluse società cooperative, che abbiano acquisito la qualifica di impresa sociale da non più di cinque anni. L’investimento massimo deducibile non può eccedere, in ciascun periodo d’imposta, l’importo di euro 1.800.000 e deve essere mantenuto per almeno cinque anni. L’eventuale cessione, anche parziale, dell’investimento prima del decorso di tale termine, comporta la decadenza dal beneficio ed il recupero a tassazione dell’importo dedotto. Sull’imposta non versata per effetto della deduzione non spettante sono dovuti gli interessi legali”.
- 3.
In this regard, see: Ateliers Kraizbierg, Sociétés d’impact societal et associations sans but lucrative: Tableau comparative, Ateliers Kraizbierg – Société Coopérative, 2017; Hiez, Société d’impact sociétal: première reconnaissance législative de l’économie sociale et solidaire – Loi du 12 décembre 2016 portant création des sociétés d’impact sociétal, in Journal des Tribunaux Luxembourg, 2017, 110.
- 4.
European Commission, Social Enterprises and Their Ecosystems in Europe – Country Report: United Kingdom, 2019, spec. 27.
- 5.
See the section 35 (2) of the 2004 Act.
- 6.
As reiterated also by the last paragraph of the art. 18, Legislative Decree n. 112 of 2017.
- 7.
Grunin Center for Law and Social Entrepreneurship, Map** the State of Social Enterprise and the Law 2018–2019, p. 14: http://www.law.nyu.edu/sites/default/files/upload_documents/Tepper%20Report%20-%20State%20of%20Social%20Enterprise%20and%20the%20Law%20-%202017-2018.pdf
- 8.
Art. 53, paragraph 1, Italian Constitution: “Every person shall contribute to public expenditure in accordance with their capabilities”.
- 9.
European Commission, Communication on taxes, fees and environmental taxes in the Single Market of 29 January 1997, in COM (97) 9 final and Bull. EU 1–2/1997 ref. 1.2.160, in the full version of the official publications office, Brussels on 26 March 1997.
- 10.
Communication of the Commission—Temporary Union framework for State aid measures to support access to finance in the current financial and economic crisis.
- 11.
Significant in this regard is the symmetry recorded by Istat between the contraction of the presence of the public in certain sectors of intervention and the expansion of the role of the third sector. See, always for Italy, Istat—“9° Censimento industria e servizi, istituzioni e non profit: un Paese in profonda trasformazione”.
- 12.
Approved by Parliament at the end of 2012 (art. 5 ter of the Decreto-legge n. 1/2012), the rating of legality is the instrument with which ICA attributes a score, from one to three “little stars”, to the honest businesses that have a turnover of more than EUR 2 million per year and that meet a number of legal and “quality” requirements. To obtain a “little star”, the owner of the company and other executives should not have previous convictions for the offences referred to in Legislative Decree number 231 of 2001 and for major crimes against the public administration as well as for tax offences. Furthermore, these persons should not have been prosecuted for crimes related to the mafia. With regards to the company, it should not have committed administrative offences arising from the offences referred to in Legislative Decree number 231 and must not have been convicted in the previous two years for illegal antitrust and consumer protection. The company also has to make payments and financial transactions over EUR 1000 exclusively using traceable instruments. To get a higher score, the regulations indicate another six requirements: two “little stars” if half of these are followed and three “little stars” if all are followed. The rating given by the Antitrust Authority, as required by law, and in accordance with the provisions in Decree number 57 of 2014, “is taken into account in the granting of loans by the government, as well as in the access to bank credit”. Under the same legislation, “the credit institutions that fail to take account of the rating assigned in the granting of loans to businesses are required to forward to the Bank of Italy a detailed report on the reasons for the decisions taken”.
- 13.
Planned by the art. 83, paragraph 10, of the Italian public contracts code (Legislative Decree 50/2016).
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Mazzullo, A. (2020). Rethinking Taxation of Impact Investments. In: La Torre, M., Chiappini, H. (eds) Contemporary Issues in Sustainable Finance. Palgrave Studies in Impact Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-40248-8_3
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