Italy faces €120bn bill if EU rejects turnover tax

mkpdavies · 30-03-2005, 01:38 PM

http://business.timesonline.co.uk/ar...545349,00.html

Quote:

THE Italian Government could face a catastrophic claim from its taxpayers if the European Court of Justice (ECJ) rules that an unpopular levy against Italian businesses is contrary to EU law.
The chances of a huge bill of up to €120 billion (£83 billion) to reimburse taxpayers have increased after an advocate- general of the court issued a legal opinion against Irap, an Italian tax on business turnover introduced in 1998, because it is too similar to VAT

.

Thats right Italy, you are the EU's puppy now. Do as your told like good little EU puppets!

Bluemerle · 30-03-2005, 03:43 PM

I posted this elsewhere, but the latest business news has just confirmed this e-mail I received on the 24th.

EU-wide tax harmonisation imposed by the ECJ is only a nod away. The
Advocate General of the ECJ has just delivered his opinion on an Italian
state tax, the IRAP. This tax has characteristics similar to VAT and
Italian companies, aided and abetted by the Big Four accounting firms and
the European Commission, brought a case to the ECJ to have it ruled
illegal, because it trod on the exclusive rights of the European
Commission to levy any tax throughout the EU which resembled VAT (in
however minor a respect). The Advocate General has opined in favour of the Commision and the complainants and against Italy.

At stake is around £80bn in Italy alone. If the nodding donkeys who sit as
judges in the ECJ confirm the Advocate General's opinion (as they usually
do), not only will the Italian State have to repay this sum, but other
member states also face huge repayments of tax to (largely to
international businesses). The total, which may hit £100bn, is a sizeable
transfer of funds from governments to businesses and one which will call
INTO phpbb_serious question the ability of the member states concerned to meet
the criteria for budget stability. Questions must therefore be raised
concerning the ability of these states to remain members of the euro,
unless correspondingly huge sums are to be transferred from other member states, such as the UK, to a 'bail-out' fund to support the Italians and others.

Whilst the financial consequences of the decision are severe, the
constitutional ones are disastrous. A precedent will be set whereby all
member states' entire tax systems can be abolished by the ECJ, leaving the European Commission's system as the sole legal tax-framing body in the EU.

The Liberal Democrats can forget any hope of introducing a local income
tax. The Conservatives can forget about abolishing droite de suite on art
sales (as their prelude to removing VAT on art sales in the UK). The only
tax law left standing will be the Commission's, and it will have achieved
what no amount of pressure through the European Constitution discussions has been able to - fiscal dictatorship in the EU.

Is this in any of the parties' manifestos for the General Election?

sent by a senior London accountant.

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30-03-2005, 03:43 PM	#2 (permalink)
Bluemerle Uber Member Join Date: Jan 2005 Location: Dorset. Posts: 3,252	I posted this elsewhere, but the latest business news has just confirmed this e-mail I received on the 24th. EU-wide tax harmonisation imposed by the ECJ is only a nod away. The Advocate General of the ECJ has just delivered his opinion on an Italian state tax, the IRAP. This tax has characteristics similar to VAT and Italian companies, aided and abetted by the Big Four accounting firms and the European Commission, brought a case to the ECJ to have it ruled illegal, because it trod on the exclusive rights of the European Commission to levy any tax throughout the EU which resembled VAT (in however minor a respect). The Advocate General has opined in favour of the Commision and the complainants and against Italy. At stake is around £80bn in Italy alone. If the nodding donkeys who sit as judges in the ECJ confirm the Advocate General's opinion (as they usually do), not only will the Italian State have to repay this sum, but other member states also face huge repayments of tax to (largely to international businesses). The total, which may hit £100bn, is a sizeable transfer of funds from governments to businesses and one which will call INTO phpbb_serious question the ability of the member states concerned to meet the criteria for budget stability. Questions must therefore be raised concerning the ability of these states to remain members of the euro, unless correspondingly huge sums are to be transferred from other member states, such as the UK, to a 'bail-out' fund to support the Italians and others. Whilst the financial consequences of the decision are severe, the constitutional ones are disastrous. A precedent will be set whereby all member states' entire tax systems can be abolished by the ECJ, leaving the European Commission's system as the sole legal tax-framing body in the EU. The Liberal Democrats can forget any hope of introducing a local income tax. The Conservatives can forget about abolishing droite de suite on art sales (as their prelude to removing VAT on art sales in the UK). The only tax law left standing will be the Commission's, and it will have achieved what no amount of pressure through the European Constitution discussions has been able to - fiscal dictatorship in the EU. Is this in any of the parties' manifestos for the General Election? sent by a senior London accountant.