Financial Crime World

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Italy’s Supreme Court Upholds Stricter Stance on Tax Crimes, Refuses to Exempt Mandatory Confiscation

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In a recent decision, the Italian Supreme Court has reiterated its stance on tax crimes, stating that agreements concerning tax offenses cannot exclude or reduce mandatory confiscation. This ruling is significant in light of the Cartabia reform, which introduced several changes to Italy’s criminal justice system.

Plea Bargaining in White-Collar Offenses

In addition to tax crimes, Italy’s criminal code also punishes various white-collar offenses, including corporate fraud, bribery, and influence peddling. Plea bargaining is applicable to legal entities accused of criminal corporate liability under Article 63 of Legislative Decree No. 231/2001.

Key Offenses

  • Corporate fraud: false accounting, illegal restitution of contributions to shareholders, and illegal distribution of profits and reserves.
  • Bribery and influence peddling: public officials accepting bribes or engaging in corrupt activities face imprisonment, while individuals offering or providing bribes can also be prosecuted.

Anti-Bribery Regulation

While Italian law does not impose a specific duty on companies to adopt compliance programs aimed at preventing bribery offenses, companies may still be held liable for vicarious corporate liability under Legislative Decree No. 231/2001 if they fail to implement effective internal controls and procedures to prevent such offenses.

Insider Trading and Market Abuse

Italy’s criminal code also punishes insider trading and market abuse, with penalties including imprisonment and confiscation of assets.

Consequences of the Supreme Court’s Decision

  • Individuals and companies accused of tax crimes must be prepared to face mandatory confiscation of assets linked to their offense.
  • This ruling underscores the importance of compliance with Italy’s tax laws and regulations to avoid severe consequences.

In summary, the Italian Supreme Court’s decision highlights the need for individuals and companies to take a stricter approach to tax compliance in order to avoid significant penalties.