* Amnesty spurs 5 bln euros outflow from San Marino banks
* San Marino says Italy's stance "incomprehensible"
By Deepa Babington
ROME, June 15 San Marino's government on Tuesday
accused Italy of imposing a virtual embargo and stalling on a
treaty it needs to get off a tax haven blacklist, as the tiny
state faces a mass outflow of funds due to Italy's tax amnesty.
The tiny, landlocked state has been under growing pressure
over the past year as it battles the downturn and a global
crackdown on offshore banking centres. [ID:nL3512937]
About 5 billion euros, or roughly a third of total deposits,
have left San Marino's banking system because of an Italian
scheme aimed at getting citizens to declare secret funds held
abroad, San Marino Finance Minister Pasquale Valentini told
Other San Marino ministers accused Italy of refusing to work
on signing a double taxation treaty and said a recently passed
Italian law had spooked companies operating in the tiny state by
requiring them to provide monthly lists of their activities.
"They want to create a sort of commercial embargo towards
San Marino," Foreign Minister Antonella Mularoni said at the
news conference held a few steps away from Italy's parliament.
"The problem is psychological...especially after Italy's
economy minister said all companies that work in countries on
the blacklist of tax havens will find the tax police waiting for
She said Italy had refused to acknowledge steps taken by San
Marino to improve transparency and "blocked" all progress on the
taxation treaty, without which the hilltop state remains on
Italy's tax haven black list.
"Today Italy's attitude has become imcomprehensible," she
said, speculating that its stance was probably motivated by an
effort to appear tough on tax havens while it asks its own
citizens to swallow a 25-billion-euro austerity package.
San Marino was removed from the OECD's grey list of tax
havens in September last year. [ID:nLO654075]