Luxemburg, 15/03/2006 (Agence Europe) - The Advocate General Stix-Hackl has concluded that the Italian regional tax IRAP (imposta regionale sulle attività produttive) should be declared illegal because it possessed the characteristics of VAT. The case was brought before Italian tax courts by the Banca Popolare di Cremona, seeking reimbursement of money paid in IRAP. Like all companies and legal persons, the Italian bank had had to pay this tax, set at “4.25% of the net value deriving from their production in the region”. The Italian courts asked the Court of Justice to give an opinion on this tax. The Advocate General concluded that the sixth VAT directive precluded IRAP, since, as the Italian judge had said, it possessed the essential characteristics of VAT in several points, including the generality of its application, proportionality to price and the fact that it is charged at each stage of the production and distribution process. It was for the national court to determine whether this was so, and if yes, IRAP would be prohibited, said the Advocate General. She also proposed that, given the sums involved - the Italian government is talking of 120 billion euro - reimbursement be limited in time to those persons and companies which had started legal proceedings for reimbursement of the tax.