Brussels, 30/04/2015 (Agence Europe) - Italian judges should set aside the Italian limitation rules on VAT in order to end systematic impunity, concluded Advocate General Juliane Kokott (case C-105/14) before the Court of Justice on Thursday 30 April.
Italian law states that limitation for breaches of VAT rules cannot be extended by more than a quarter of its usual length, meaning that it is only possible to pursue such infringements back some eight years. However, member states have an obligation to put in place penalties that are effective, proportionate and dissuasive for breaches of EU law by individuals.
Kokott says that a limitations regime that, for “systemic reasons” (failing of the legal system), as appears to be the case in Italy, results in impunity for those responsible for VAT fraud (illegal exemption or infringement of EU competition law), should be set aside by national courts even though it has not been repealed by either legislative or constitutional means. (Jan Kordys)