Trusts, Tax Evasion, and Damages for the Government

In a high-profile case, the Court of Cassation upheld the appellate court’s ruling regarding the classification of tax fraud and complicity in tax fraud committed through trusts by both individuals and corporations.

However, it overturns the Court of Appeals’ ruling, which had ordered the payment of a sum to the French government as compensation for damages arising from aggravated money laundering related to tax fraud.

The Court of Appeals had ruled that this amount was justified "given the scope of the work carried out and the time required to complete it."

The Court of Cassation held that the court "failed to explain how it calculated the damages consisting of the cost of the specific investigations conducted byadministration to determine the amounts subject to tax, an investigation that was complicated by money laundering activities."

Criminal Cassation, Feb. 4, 2026, No. 24-84.041, Published

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