Between Legality and Fiscal Effectiveness: The Transformation of Tax Law Interpretation in Italy under CJEU Case Law

Abstract

The article examines the transformation of the interpretation of tax law in Italy under the influence of the case law of the Court of Justice of the European Union concerning the protection of the EU’s financial interests, with particular emphasis on the line of judgments initiated by Taricco and further developed in the recent Lin judgment (Case C-107/23 PPU). The analysis focuses on the tension between the obligation to ensure effective, proportionate and dissuasive sanctions for VAT fraud and the constitutional principle of legality in criminal matters, as well as the protection of fundamental rights. The author argues that the change in the interpretation of Italian tax law did not result from legislative reform but from an evolutionary judicial reinterpretation driven by the primacy and effectiveness of EU law. Particular attention is devoted to the role of national courts, the statute of limitations in criminal tax cases, and the exclusion of disciplinary liability for judges applying EU law in disregard of conflicting national case law. The article concludes that the CJEU’s jurisprudence leads to a functional redefinition of limitation periods and contributes to the emergence of a new balance between the effective protection of the EU’s financial interests and constitutional rule-of-law standards.