Taricco and Others (Judgment) [2015] EUECJ C-105/14 (08 September 2015)

Taricco and Others (Judgment) [2015] EUECJ C-105/14 (08 September 2015)

A national rule limiting the extension of the limitation period for VAT fraud prosecutions to only a quarter of its initial duration is liable to undermine the effectiveness of penalties required by Article 325 TFEU if it prevents effective and dissuasive punishment in a significant number of serious fraud cases. National courts must disapply such rules if they impede fulfilment of EU obligations.

Citation
[2015] EUECJ C-105/14
Parties
Accused: Mr Taricco; Accused: Mr Filippi; Accused: Ms Leonetti; Accused: Mr Spagnolo; Accused: Mr Salvoni; Accused: Mr Spaccavento; Accused: Mr Anakiev; Company Involved: Planet Srl
Jurisdiction
European Union
Judgment Date
08 September 2015
Procedural Posture
Preliminary Ruling (criminal Proceedings) / Reference for Preliminary Ruling From Tribunale Di Cuneo
Outcome
Reference answered; national court must disapply limitation rule if it prevents effective prosecution of serious VAT fraud.
Legal Topics
VAT Fraud, Limitation Periods, Effectiveness of Penalties, EU Financial Interests, Disapplication of National Law
European Union Law Criminal Law Tax Law VAT Fraud Limitation Periods Effectiveness of Penalties EU Financial Interests Disapplication of National Law

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Parties

Mr Taricco

Accused

Mr Filippi

Accused

Ms Leonetti

Accused

Mr Spagnolo

Accused

Mr Salvoni

Accused

Mr Spaccavento

Accused

Mr Anakiev

Accused

Planet Srl

Company Involved

Procedural Posture

Preliminary Ruling (criminal Proceedings) / Reference for Preliminary Ruling From Tribunale Di Cuneo

Legal Issues

  1. 1 Whether Italian limitation rules for VAT fraud undermine EU obligations to provide effective and dissuasive penalties under Article 325 TFEU
  2. 2 Whether such limitation rules amount to an unlawful VAT exemption under Directive 2006/112/EC
  3. 3 Whether the limitation rules can be assessed under Articles 101, 107, or 119 TFEU

Ratio Decidendi

A national rule limiting the extension of the limitation period for VAT fraud prosecutions to only a quarter of its initial duration is liable to undermine the effectiveness of penalties required by Article 325 TFEU if it prevents effective and dissuasive punishment in a significant number of serious fraud cases. National courts must disapply such rules if they impede fulfilment of EU obligations.

Court Disposition

Reference answered; national court must disapply limitation rule if it prevents effective prosecution of serious VAT fraud.

Orders

  • A national rule limiting the extension of the limitation period for VAT fraud prosecutions is incompatible with Article 325 TFEU if it prevents effective and dissuasive penalties; national courts must disapply such rules.
  • The limitation system cannot be assessed under Articles 101, 107, or 119 TFEU.