The Court of Cassation has ruled on the claims made by the State for compensation for the non-material damage suffered as a result of the commission by the convicted offender of the offence of tax fraud laundering. 

The Court of Appeal had upheld the State’s claim that the defendant had discredited the national system for preventing money laundering. According to the Court, his actions had encouraged non-compliance with the tax transparency expected of every taxpayer under the declaratory tax system applicable in France, thereby weakening the authority of the State in the eyes of the public.

On appeal, the Court of Cassation, citing articles 2 and 3 of the Code of Criminal Procedure, pointed out that civil proceedings can only be brought by those who have personally suffered damage directly caused by the offence, as distinct from the harm caused to the general interests of society, which is remedied by public prosecution.

It logically concluded that the commission by a taxpayer of the offence of laundering tax fraud was not likely to cause the State any non-material damage distinct from the harm done to the general interests of society, which the public prosecution was intended to repair, and consequently ruled that the appeal judgment should be overturned.

Cass. crim., 15 November 2023, no. 22-82.826