Advocate General Kokott has handed down her Opinion in Case C-105/14 Taricco and Others. The Italian courts requested a preliminary reference from the CJEU on whether EU law requires domestic courts to refrain from applying domestic limitation period provisions in order to guarantee the effective punishment of tax offences.
AG Kokott firstly confirmed that the Court had jurisdiction to hear the dispute. Although the case concerned tax offences under Italian criminal law, the Italian authorities were required to exercise their powers according to the relevant provisions and principles of EU law. Criminal proceedings in the field of VAT fell within the scope of EU law and the Court’s jurisdiction.
AG Kokott held that EU law required that Member States provide for “effective, proportionate and dissuasive penalties” for irregularities in VAT matters. In serious cases of VAT fraud this would involve deprivation of liberty. She found that domestic limitation period provisions which had the effect of exempting the perpetrators of VAT fraud from punishment breached EU law and should not be applied by the national courts.
Case C-105/14 Ivo Taricco and Others, AG’s Opinion, 30 April 2015
