The European Court of Justice (ECJ) has found that Italy has failed to fulfil its obligations under the Sixth VAT Directive and the general principle of good faith cooperation, which require each Member State to take all legislative and administrative measures appropriate to ensure VAT collection, by checking returns and calculating and collecting the tax due. In particular, the ECJ found that Law No 289 of 27 December 2002, providing for general and indiscriminate waiver of verifications effected in the 1998 to 2001 period, generates a considerable imbalance between the amounts actually due and the amounts paid by taxable persons taking advantage of the tax amnesty. This seriously disrupts the proper functioning of the common VAT system.