They are not illegitimate tax penalties proportional to the seriousness of the violation
The Supreme Court has recently reaffirmed the principle that the tax penalties must be appropriate to the circumstances of the case and respect the principle of proportionality (Cass., Sec. V, 28 September 2018, n. 23506).
In the present case, the Office has recovered to tax a VAT credit, levying a fine of one hundred percent of the increased tax due.
The Supreme Court, acknowledging the long address delivered by the Court of Justice, said that the sanctions can not be determined automatically on the basis of an additional tax according to a flat rate, but should be graded in relation to the specificities the case in question.
In determining the sanctions the Member States must therefore have regard to the nature and gravity of the infringement committed and respect the principle of proportionality Union matrix.