Brussels, 26/09/2014 (Agence Europe) - On Thursday 25 September, the European Commission asked Italy to amend its inheritance tax legislation, which discriminates against bequests to non-profit organisations in another EU member state or a European Economic Area state. Under Italian law, legacies to non-profit organisations pursuing public and social goals are tax-exempt. However, similar legacies to non-profit bodies established elsewhere in the EU/EEA are only granted tax exemption if there is reciprocity from that member state (i.e. that the country in question gives an exemption to Italian non-profit organisations). Otherwise, the legacy is taxed at 8% of its value. As a result, the taxation of bequests to foreign non-profit entities is frequently higher than bequests to their Italian counterparts. In addition, Italian legislation excludes Italian bonds and public securities from the inheritance estate, while bonds and public securities issued by other EU and EEA States are not allowed this exclusion. The Commission considers such provisions to be discriminatory and to constitute unjustified restrictions on the free movement of capital. The requests sent to Italy take the form of two reasoned opinions. If Italy does not comply within two months, the Commission may refer the case to the Europea Court of Justice. (EL)