ITALY’S TAX AMNESTY IS ILLEGAL LET-OFF FOR CHEATS, RULE EU JUDGES
July 1st, 2008
BY KEITH NUTHALL
AN ITALIAN government amnesty allowing VAT cheats to escape criminal charges and administrative penalties for under or not-declared returns from 1998 to 2001 by paying a lump sum to national tax authorities has been declared illegal. This sum equals 2% of the VAT payable on their supplies and services in these years plus 2% of VAT deducted during the same period. The European Court of Justice found this 'automatic settlement' procedure breaks the EU's sixth VAT directive, being "tantamount to a tax exemption".
ENDS
AN ITALIAN government amnesty allowing VAT cheats to escape criminal charges and administrative penalties for under or not-declared returns from 1998 to 2001 by paying a lump sum to national tax authorities has been declared illegal. This sum equals 2% of the VAT payable on their supplies and services in these years plus 2% of VAT deducted during the same period. The European Court of Justice found this 'automatic settlement' procedure breaks the EU's sixth VAT directive, being "tantamount to a tax exemption".
ENDS
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