Financial Crime World

Title: San Marino CracksDown on Tax Evasion: New Law Targets Use of Forged Documents and Criminal Conspiracy

Introduction

The Most Serene Republic of San Marino, renowned for its tax havens, has taken a firm stand against financial crime with the approval of a new law. This law targets tax evasion through the use of forged documents and criminal conspiracy.

The New Law

On June 7, 2010, the Captains Regent of the Republic announced the Ordinary Law no. 99. This law consists of two titles:

  1. Rules for the Prevention of Tax Evasion through the Use of Forged Documents (Title I)
  2. Amendments to the Criminal Code (Title II)

Title I: Rules for the Prevention of Tax Evasion through the Use of Forged Documents

Under Title I, the following offenses are targeted:

  • Issuing or using invoices or other documents for non-existing operations (Articles 1-4): These documents refer to invoices or similar documents issued for non-existing transactions or services, which indicate incorrect amounts, describe false operations, or involve third parties other than the actual ones. Penalties include:

    • Second-degree imprisonment
    • Daily fines
    • Interdiction from professional or artistic activities

  • Submitting false statements to financial administration using invoices and documents for non-existing operations or services for tax evasion (Article 3): This applies to those who use these documents to enable tax evasion for themselves or third parties. Penalties match those for issuing or using false documents.

  • Voluntary settlement (Article 4): An option is available for those who wish to settle the crime with a payment, provided that the payment is made within a specified term and the amounts involved do not exceed €25,000.00.

  • Reporting violations to the Tax Office (Article 5): Communications regarding any violations of Articles 2 and 3 are to be provided by the Police Forces to the Tax Office.

Title II: Amendments to the Criminal Code

Under Title II, the criminal conspiracy is amended by increasing the prison sentence by two degrees when associates use intimidation related to the Association bond to commit offenses, acquire control of economic activities, licenses, authorizations, public contracts, or obtain illegal profits or advantages. (Article 6)

Conclusion

The new law repeals provisions contrary to it and enters into force following its legal publication. The Captains Regent, Marco Conti and Glauco Sansovini, acknowledged the importance of updating the legal framework to maintain the financial stability and reputation of the Most Serene Republic of San Marino.