31 Dec 2009

Tax amnesty raises 95 billion euros

1:44 pm on 31 December 2009

Italy has raised €95 billion ($US137 billion) from a tax amnesty - much more than the government had expected.

According to the ministry of finance, 98% of illegally-held overseas money has been repatriated.

The amnesty has now been extended until the end of April.

The BBC reports the move provided a boost for Italy's banking industry - with the money flowing into small and medium size banks.

The government will get a windfall of €5 billion from the amnesty. It will be spent helping to strengthen the economy, which came out of recession in the third quarter of this year.