For example, in recent years a stupid regulation called "sector studies" have been introduced. Basically, they look at the average you should be earning in a specific field. If you report less than that amount in a tax declaration, you are assumed to be evading taxes. Practically you are assumed guilty until proven innocent, which is not as easy to do as you think.

This is without adding other systemic diseases. Having a tax check is not a desirable outcome in Italy. One anecdote from a friend: he got a tax inspection in his company (in the construction sector). After two days of checks, nothing was found. But instead of being left alone, the inspectors told him this: "we haven't found anything, but since we have been checking for two days, we have to find something". In the end they agreed on faking some irregularities on the heating system and a 500€ fine.

Yes, this is just one episode, but not really an uncommon one, unfortunately.

I left my country 5 years ago and never looked back. There are so many better places in Europe, I strongly advice not to start a company in Italy.