The Pope is still working on his encyclical regarding the evils of tax evasion (blogged here). Meanwhile, the European Commission has asked the Italian government to explain a tax break it provides the Catholic Church.
Since 2005, the Church has received a property tax exemption for buildings that house various operations.
European Union officials say the tax relief may break EU rules on state subsidies by giving an unfair advantage over rivals.
The Church's estimated tax savings?
The European Commission revealed last week that it has been asking the Italian government for information on the tax advantages it provides the Catholic Church. There now are indications, according to various news reports, that the Church is willing to give up some of the breaks.