Under investigation for tax evasion, embezzlement or abuse of office? The first steps that matter

How a complex case usually starts

Many tax evasion, embezzlement or abuse of office cases do not start with a summons but with an ANAF tax inspection, a Court of Auditors audit, an EU funds check or a search at the company's premises. Sometimes the person concerned only learns about the case when the authorities seize documents and computers.

In such cases the investigation may be carried out by the prosecutor's office attached to the local or county court, by the National Anticorruption Directorate (DNA) or, for organised crime and human trafficking, by DIICOT. Jurisdiction depends on the nature of the offence, the position of the person and sometimes the amount of the loss.

What to do during a search

A home search is usually carried out on the basis of a warrant issued by a judge. You have the right to see the warrant, to be assisted by a lawyer and to have your objections recorded in the report. The authorities are not required to wait for the lawyer beyond a certain time, so it is best to call one immediately.

• Ask for and read the search warrant: who issued it, for which offences and which premises it covers.
• Do not obstruct the search, but do not make statements outside the legal framework.
• Check that the report lists exactly the documents and devices seized.
• Sign only after reading the report and ask for your objections to be recorded.
• Keep a copy of the report and inform your lawyer as soon as possible.

The right to a lawyer and the right to remain silent

Suspects and defendants have the right to be assisted by a lawyer at every hearing and the right not to make any statement, without their silence being used against them. In economic cases, a hasty statement made without knowing the documents and the exact charge can create problems that are hard to fix later.

Whether to make a statement, and what it should contain, is decided once the lawyer knows the charge, the evidence gathered and the relevant financial documents.

Asset freezes and other precautionary measures

In cases involving a loss, the prosecutor may freeze assets, bank accounts or property to secure recovery of the loss or a possible confiscation. Such measures can paralyse a company or a family's life.

Precautionary measures can be challenged within the time limit set by the Code of Criminal Procedure. Grounds may include the disproportion between the value of the frozen assets and the alleged loss, the fact that the assets belong to third parties or that the measure is no longer necessary.

Forensic accounting: the key evidence in economic cases

In tax evasion, embezzlement or money laundering cases, the existence and amount of the loss are usually established through a forensic accounting report. The parties have the right to ask for an expert of their choice to take part in the examination, who may raise objections and give a separate opinion.

A critical analysis of the tax inspection reports and the expert report, cross-checked against the company's accounts, is often where the defence can show that the loss is smaller, non-existent or wrongly calculated.

Repaying the loss and simplified procedures

For certain economic offences, the law attaches favourable effects to repayment of the loss, including reduced sentencing limits, under strict conditions and deadlines. There are also procedures such as plea agreements or simplified trials, which have advantages but also significant consequences.

These options are not suitable in every case. They should be assessed only after a full study of the evidence, realistically comparing the risks of a defence on the merits with the benefits of a simplified procedure.

In short

• Call a lawyer from the very first moment: search, summons or criminal complaint.
• Do not make statements before knowing the charge and the evidence.
• Challenge unlawful or disproportionate preventive and precautionary measures in time.
• Ask for a party expert in the forensic accounting examination.
• Assess with your lawyer, based on the file, whether a simplified procedure makes sense.

This article is for information only and does not constitute legal advice. For an analysis of your specific situation, contact a lawyer.