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The two rivals went head-to-head at Anfield, with the hosts looking to edge closer to the Premier League title.
And with tensions high early on, Toffees captain Tarkowski went flying in on Liverpool midfielder Alexis Mac Allister in the 11th minute.
The defender got the ball but caught his opponent with his follow through high on his left leg.
Mac Allister was left in agony on the pitch, with Tarkowski initially shown a yellow card for his challenge.
He did not need to follow through like that." But VAR stuck with referee Sam Barrott's initial decision, and decided against overturning it.
READ MORE:Premier League offer explanation on VAR red card controversy in Liverpool vs EvertonREAD MORE:Mohamed Salah sparks Liverpool contract theory after leaked image emerges online
A PGMOL statement confirmed: "The referee’s call of yellow card for a reckless foul by Tarkowski was checked by the VAR, with contact on the follow through after Tarkowski had played the ball deemed to be reckless."
But former Premier League referee Dean, who usually supports VAR decision and is a loyal supporter of referees, was furious with the decision and couldn't understand why Tarkowski wasn't sent off.
Speaking on Sky Sports, he said: "He should have gone to the screen and he should be off.
It is a red card all day."
James Tarkowski was lucky to escape a red card for his high challenge on Alexis Mac Allister(Image: Liverpool FC)Article continues below
Speaking on BBC Radio 5 Live, he said: This challenge is nasty from James Tarkowski.
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