Italian VAT fraud rules 'breach EU law'

(ANSA) - Brussels, April 30 - Italy's statute of limitations on alleged VAT fraud is "incompatible" with EU law and so "must be disapplied", advocate general of the European Court of Justice Juliane Kokott said Thursday.
    The AG was giving her opinion concerning a prejudicial question brought before the court by judges in the Piedmont city of Cuneo. There, a court is hearing a case involving alleged fraudulent VAT statements that risks being timed out before a definitive sentence is reached. Since taxes raised through VAT form part of the EU's own resources, the judges questioned whether "EU law tolerates the Italian law regarding the statute of limitations". The opinion of the AG is not binding but it is usually upheld by the judges at the Luxembourg court.