Court Ruling on Tax Fraud Investigation

Extract

[...] These fraudulent behaviors are defined by Article L B of the LPF and include actions such as making purchases or sales without invoices, creating invoices or fictitious documents, or keeping inaccurate or fictitious accounts. Thus, it is therefore alleged that an order authorizing a home visit listed in a general manner all cases of fraud mentioned by Article L B of the LPF, without establishing a precise link between the actions of the targeted company and one of these categories of fraud. It is emphasized that some of these cases of fraud cannot necessarily be committed simultaneously for the same operations. [...]

[...] What solution was provided by the Court of Cassation? Solution: The Court of Cassation responds negatively to the grounds that: - The first president indicates that the orders specify that the grounds and the dispositif are deemed to have been established by the judge who rendered them. He emphasizes that the number of documents produced and the time available to the judge to examine them do not necessarily suggest that he was unable to study them correctly. Therefore, the fact that another order was rendered in the same terms by another judge does not affect the effectiveness of the control exercised by the first president. [...]

[...] and Petra Bloodstock Agency Ltd (the companies) from paying income tax and value-added tax. An appeal is therefore lodged by the companies to contest the order which confirms the authorization order of the judges of liberty and detention of Alençon and Lisieux: What are the arguments raised by the applicant companies in support of their appeal? 1er motif : The judge must motivate his decision by explaining the factual and legal elements on which he bases his decision. This includes the reasons why he believes there are indications of tax fraud in the present case. [...]

[...] Com N°17-16.071 : Stés Skymarc Farm Inc. and Petra Bloodstock Agency Ltd What are the facts at the origin of the dispute and what was the procedure engaged? In this case, an authorization from the tax authorities' agents to proceed with home visits, seizures in premises and dependencies of the Haras de la Louvière in Mahéru (Orne), which may be occupied by the company Elevage and agriculture, the American company Skymarc Farm Inc. or Ecurie Skymarc Farm, the British company Petra Bloodstock Agency Ltd, Mr. [...]

[...] - The first president notes that the orders explicitly state that Skymarc Farm Inc. and Petra Bloodstock Agency Ltd are suspected of evading corporate tax or turnover tax by carrying out horse breeding, sale, and racing activities without filing tax returns and without keeping corresponding accounting records. He considers that these elements provide sufficient presumptions of fraud to justify the decisions authorizing home visits. Another possible question: Are the orders authorizing home visits issued by the judge of liberties of detention in conformity with the legal conditions governing fiscal searches? [...]