International Tax Offenses: What They Are and Why They Are Prosecuted
Tax and financial crimes are among the main areas of investigation by national and international authorities. In such cases, Legal Defense for Tax Offenses becomes essential, as the most serious and criminally prosecuted violations include:
- Carousel VAT fraud, involving fictitious transactions between countries to obtain unlawful VAT refunds.
- International tax evasion, often carried out through offshore accounts and shell companies.
- Fraudulent bankruptcy, with the misappropriation of assets to avoid creditors or justice.
- False invoicing, involving fictitious transactions to inflate costs or reduce taxable income.
- Failure to pay taxes and unlawful tax offsets, illicit strategies to reduce the tax burden.
- Corporate relocation fraud (esterovestizione), i.e. falsely registering a company in a low-tax jurisdiction to evade taxes.
- Fake operations in tax havens, to hide the real beneficiary of the profits.
Tax and judicial authorities are adopting increasingly strict measures to counter these offenses, with consequences that may include arrest, asset seizure, and prosecution for economic crimes.
Defense Strategies for Tax Offenses and Fraudulent Bankruptcy
Facing accusations of tax crimes requires a solid and targeted legal strategy. The most effective tools in Legal Defense for Tax Offenses include:
- Analysis of evidence and financial transactions, to prove the legitimacy of the challenged operations.
- Challenging legal classifications, to avoid having the case fall under more serious offenses such as criminal conspiracy.
- Appeals against asset seizures and freezes, to protect assets from unjustified precautionary measures.
- Defense in extradition proceedings, if the individual is being prosecuted in multiple jurisdictions.
- Negotiations with tax and judicial authorities, to reduce penalties or obtain alternative outcomes to criminal trials.
A key aspect is managing the precautionary phase, where measures such as account freezes or asset seizures are often implemented. An effective defense must act quickly to minimize damage and ensure the right to due process.
International Tax Investigations and Legal Implications
At the international level, authorities cooperate through instruments such as:
- The European Arrest Warrant, which enables extradition between EU countries for serious tax offenses.
- INTERPOL Red Notices, to track individuals suspected of cross-border tax evasion.
- Tax cooperation agreements, including the CRS (Common Reporting Standard) for the automatic exchange of banking information.
These tools improve the efficiency of investigations but can also be misused to pressure suspects or extract forced confessions.
