Self-money laundering if money transfer for invoices for non-existent transaction
The Supreme Tax Court with the decision n. 6397/2020 ruled that the entrepreneur who transfers money to pay the invoices for a non-existent transaction and then receives the same money, previously paid by wire transfer, commits the crime of self-money laundering as per art. 648 ter1 of the Italian Criminal Code.
An Italian company has received invoices for non-existent transactions from a Dutch company, and those invoices have been paid by wire transfer. The same sums have been returned to the same Italian company for cash.
The crime of self-money laundering is applied to the offender who contributed to the predicate offence when he uses, substitutes or transfers the unlawful benefit in economic, financial, business or speculative activities.
The Italian Tax authority seized the sums for the crime of self-money laundering.
The taxpayer has appealed the seizure because the sums were intended for mere use or personal enjoyment and, in this event, the conduct is not punishable as per art. 648 ter1, par. 4, of Italian Criminal Code.
The Supreme Tax Court rejected the appeal: the special cause of non-punishment as per art. 648 ter1, par. 4, of Criminal Code is not applicable in this case because the provision on self-money laundering punishes the conduct of anybody who, with knowledge and intent, carries out, in relation to money or other benefits, any transactions in such a way as to obstruct the identification of their criminal provenance.