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Italian council offers Mafia whistleblowers exemption from taxes - Telegraph
Brave businessmen who refuse to pay protection money to the Mafia have been made an offer they can't refuse - no taxes.

The mayor of a Sicilian town has offered victims of extortion rackets exemption from council levies if they help the police.

The Mob is estimated to make more than £20bn a year in rackets by forcing businesses and individuals to hand over cash in exchange for protection. The system is known in Italy as "pizzo."

Those who refuse to pay face threats, physical attacks and even murder.

Police trying to combat the system have traditionally had their inquiries blocked by a wall of silence as victims refuse to cooperate for fear of reprisals.

But now Giuseppe Nicosia, mayor of Ragusa, has announced that victims of pizzo who talk to the police will be immune from local council taxes.

He said: "It is something that was debated in the council chamber and when it was put to the vote was passed unanimously by all the members.

by Fran (fran at eurotrib dot com) on Mon Oct 13th, 2008 at 02:28:33 PM EST
[ Parent ]
A worthy initiative from the small town of Vittoria taken last February but brought to national prominence in September when a local businessman finally availed himself of the law.

It isn't too simple. The racketeers must be denounced and brought to trial- which takes years in Italy. So it doesn't appear all that effective. I can't see a businessman blowing the whistle just over exemption from local levies on water and such.

The Telegraph article does not mention another clause in the local law: anyone caught paying protection for commercial activities will have his license revoked.

Taken together that makes a good incentive to go street legal.

by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Mon Oct 13th, 2008 at 06:38:49 PM EST
[ Parent ]
Are there not tax auditors in S. Italy?

You can't be me, I'm taken
by Sven Triloqvist on Tue Oct 14th, 2008 at 03:00:38 PM EST
[ Parent ]
There are- but certainly not as effective as the mafia auditors. The Telegraph article points to 20 billion as the sum gained through protection. Actually mafia business ventures are estimated to be around 120 billion a year- all untaxed.
by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Tue Oct 14th, 2008 at 04:33:44 PM EST
[ Parent ]

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