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The Republic of Italy has been condemned by the European Court of Justice for the annual budget law of 2002 which allowed a blanket remission for fiscal evasion of VAT for the previous four years.

At the time Berlusconi banner company Mediaset was under investigation for fiscal evasion on the order of 80 to 100 million euro. The case was linked to the All Iberian scandal, that, too, resolved with providential ad personam laws. Investigators accused Berlusconi of using two off-shore companies as a go-between to artificially inflate the price of film and TV rights purchased in the US before being "resold" to Mediaset. Berlusconi paid eventually a few thousand euro to block the case along with a large number of Italians eager to close their far more petty fiscal controversies with the state.

The Court has condemned Italy on the grounds that it violates the principal of equality among all European taxpayers. The Court now has an upcoming hearing for fiscal year 2003.

While on the subject, Berlusconi will hold a cabinet meeting tomorrow in Naples in which he will triumphantly announce that he has solved the garbage problem. The garbage will not be in view. It is now stockpiled outside the city limits under military control- quite often on property belonging to the Vatican. Rental costs have not been disclosed.

The Economist is once again criticizing Berlusconi- or rather, just stating plain facts with a good deal of understatement. At least when it writes about Italy the Economist doesn't wear halters.

by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Thu Jul 17th, 2008 at 06:10:51 PM EST
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Here's the judgement against the amnesty on VAT passed in 2002 as part of the annual financial law.

The ruling is final. Italy once again has to pick up Berlusconi's loose checks which I suppose will cost more than the 80 to 100 million he saved. As the esteemed professor Sartori remarked the other day, Italy is only in Europe from a geographical perspective.

by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Thu Jul 17th, 2008 at 06:25:17 PM EST
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