De facto immunity from criminal prosecution and EU law
InRe Taricco and othersC-105/14 (8 September 2015) the CJEU found that domestic limitation provisions which provided tax evaders with de facto immunity were in breach of EU law principles.
The defendants had been charged with criminal offences involving fraudulent ‘VAT carousel’ arrangements including the creation of shell companies and the use of false documents which allowed them to purchase champagne VAT free and therefore below the market price.
Under Italian limitation periods the interruption of criminal proceedings in relation to VAT offences had the effect of extending the limitation period by only a quarter of its initial duration. Since criminal proceedings in relation to tax evasion usually involved very complex and lengthy investigations this meant that the offences would be time barred before a final judgment could be delivered. The referring Italian court...
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De facto immunity from criminal prosecution and EU law
InRe Taricco and othersC-105/14 (8 September 2015) the CJEU found that domestic limitation provisions which provided tax evaders with de facto immunity were in breach of EU law principles.
The defendants had been charged with criminal offences involving fraudulent ‘VAT carousel’ arrangements including the creation of shell companies and the use of false documents which allowed them to purchase champagne VAT free and therefore below the market price.
Under Italian limitation periods the interruption of criminal proceedings in relation to VAT offences had the effect of extending the limitation period by only a quarter of its initial duration. Since criminal proceedings in relation to tax evasion usually involved very complex and lengthy investigations this meant that the offences would be time barred before a final judgment could be delivered. The referring Italian court...
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