Money laundering of tax fraud – Beware of the motivation of judgments awarding damages to the State
Since 2014, case law has allowed for damages to be awarded to the State as a civil party in cases of money laundering of tax fraud.
However, on January 29, 2020, the Court of Cassation censured a decision of the Paris Court of Appeal which had approved the award of damages to the State, considering that the motivation of the judges of first instance did not put it in a position to ensure that compensation for the loss resulting from tax fraud was not included in the compensation, the loss having to be recovered by means of tax increases and late payment interest.
Trial judges will therefore henceforth have to ensure that the amount of damages awarded to the State is not confused with the loss resulting from tax fraud.
Cass. crim. 29 January 2020, No. 17-83.577.