I think that normally that may be the approach (and I'm not singling out Italy for this, it probably applies to most countries).
On this occasion, however:
> In all previous cases involving other international groups, once a settlement was reached and payment made, prosecutors closed related criminal investigations, either through plea deals or by dropping the cases.
> This time, however, Milan prosecutors did not share the tax authority's approach and decided to press ahead with their probe, leading to a request that the suspects be sent to trial.
Damn, is anyone an expert that can speak to the criminal law involved here?
It’s crazy that executives can jump around the law and not face any criminal charges, then the company picks up the bill (although I’m not ignorant thinking this isn’t usual)
I’m just curious to learn more about how often this is the case and you usually what happens with people afterward
I don't know about Italian law, but in the US tax evasion is pretty difficult in many cases to prove. It is illegal in the US to deliberately defraud the IRS to evade paying taxes, it is not illegal to make a mistake, or claim a deduction you think you can claim when the IRS decides you can't, etc. So prosecutors must prove you had an intent to evade taxes you knew you owed. Because they can rarely meet that bar, criminal charges are rarely brought.
it's for the civil part. (so you need to show the tax office some paper trail that you based your filings on. invoices, bills, contracts, emails, receipts. and if they are formally okay, then the tax agency has to show that they are just fake papers.)
as far as I understand the criminal part still considers intent and so on (and has a higher standard for burden of proof), but if you file for VAT return and then you have zero invoices (and so the numbers simply don't add up) the court can easily find that there was intent to defraud the state. (and then sentencing is based on the amount of damages.)
On this occasion, however:
> In all previous cases involving other international groups, once a settlement was reached and payment made, prosecutors closed related criminal investigations, either through plea deals or by dropping the cases.
> This time, however, Milan prosecutors did not share the tax authority's approach and decided to press ahead with their probe, leading to a request that the suspects be sent to trial.