Court of Justice of the European Union ruled that Italian legislation unjustifiably discriminates between winnings from Italian casinos and winnings from casinos in other Member States
On the 22 October 2014 the Court of Justice of the European Union (CJEU) held that Italian legislation unjustifiably discriminates between winnings from Italian casinos and winnings from casinos in other Member States
In joint cases C -344/13 and C-367/13 CJEU held that an Italian law exempting from tax winnings from casinos situated in Italy while including winnings from casinos situated abroad in the basis of assessment for income tax purposes is discriminatory and unjustified in terms of articles 53 and 56 of the Treaty of the Functioning of the European Union
The Italian Authorities defended national legislation by stating that the aim is to prevent money laundering abroad, combat compulsive gambling and limit the flow of capital abroad.
However, the CJEU held that Italian legislation was establishing different tax arrangements depending on the country from which the winnings are obtained thus giving rise to a discriminatory restriction on the freedom to provide services. Such a discriminatory restriction cannot, in the CJEU opinion, be justified as the Italian authorities are assuming that entities established abroad are engaged in criminal activity.