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The Italian Catholic Church will be stripped of an historic tax exemption from 2013 after the government upheld a divisive decree under close scrutiny from EU watchdogs.
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In 2010 the EU opened an investigation into whether tax breaks enjoyed by some Church properties in Italy could be classed as illegal state aid.
The extra revenue from these exempt properties – including hotels, restaurants and sports centres – could be €25.5m a year in Rome alone, La Repubblica daily reported, citing official figures.
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