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French State Drops Damages Claim in Balkany Tax-Fraud Case as Appeals Court Sets January Decision

The shift follows a Cassation ruling that curbs duplicate civil compensation where tax corrections plus criminal penalties already address the harm.

Overview

  • The Paris Court of Appeal heard the civil phase on 26 November and placed its ruling under advisement to 21 January 2026.
  • Represented by its lawyer, the State withdrew its damages demand and sought €30,000 to cover procedural costs.
  • The Cour de cassation in May 2024 annulled a €400,000 award—€300,000 for material loss and €100,000 for moral harm—citing poor justification and overlap with sanctions.
  • Patrick and Isabelle Balkany’s criminal convictions are final, with prison terms, €100,000 fines each and ten years of ineligibility.
  • Investigations led to seizures or confiscations of assets including the Giverny mill’s usufruct and villas in the Antilles and Marrakech held via offshore structures.