The Sector Studies (in Italian abbreviated as SdS) have been introduced in the Italian tax system in 1993.
They have represented, until the recent reform an audit method that has helped the Tax Administration to distinguish between “auditable” and “non auditable” firms. Through the utilization of complex economic and statistical elaborations, SdS calculate specific presumptive revenues for each taxpayer on the basis of enterprises’ data. If the company’s declared revenues are lower than the Tax Administration’s estimates, the company itself can decide to comply to the estimates, i.e. raising its declared revenues and paying taxes based upon the estimated revenues, or possibly undergo tax controls in order to verify the causes of the deviation.
In recent years, the need has emerged for a revision of the instrument, considered no longer suitable in the current economic context.
The sector studies allow to evaluate the ability to produce revenues or obtaining remuneration both companies and professionals have, according to the business organizational structure they have adopted and the economic environment in which they operate.
They are applied to over 4 million subjects engaged in business activities and self-employment. The sector studies are ranked into four areas / sectors: Services, Trade, Manufacturing and Professionals. These groupings allow companies to be divided into uniform groups called clusters which features are correlated to presumed incomes and compensation through a mathematical calculation.