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.
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