On Wednesday 29 July 2016, the Luxembourg courts delivered their decision on the trial of three people in connection with the LuxLeaks controversey, the trial of which had lasted three weeks between April and May.

The affair emerged in early November 2014 and the trial involved two former employees of PricewaterhouseCoopers (PwC) Luxembourg, French nationals Antoine Deltour and Raphael Halet, who were accused of taking confidential documents from the company, with the Deputy State Prosecutor, David Lentz, requesting that they be sentenced to 18 months in prison.

Meanwhile, an undisclosed fine was requested by the Deputy State Prosecutor for journalist Edouard Perrin, accused of distributing these leaks.

The LuxLeaks affair involved almost 30,000 documents highlighting the practice of 300+ companies establishing their tax liabilities with Luxembourg tax authorities in advanced as means of receiving tax breaks. It transpired that the practice was in fact legal and conducted in other countries. Companies involved included many of the world's largest corporations.

Wednesday's ruling saw Antoine Deltour and Raphael Halet receiving 9-month and 12-month suspended sentences respectively, with David Lentz being acquitted. Deltour and Halet also received suspended fines of €1,500 and €1,000 respectively. They have 40 days within which to appeal the sentences.

Following the outcome, PWC Luxembourg issued a statement, as follows:

"In the context of the trial on the Luxembourg tax data leak referred to as Luxleaks for which the Luxembourg court has given a judgment today, PwC Luxembourg wishes to make the following statements:

• The court’s conclusion was to find guilty two of the three defendants and to grant PwC the requested damages of €1.

• PwC Luxembourg acknowledges the decision of the Court and will analyse it within the coming days.

• PwC Luxembourg remains firmly committed to protect the confidentiality of its clients' documents and data.

• PwC Luxembourg stands by the advice it provided to its clients, all of which was given in accordance with applicable local and international tax laws and agreements and in accordance with the PwC Global Tax Code of Conduct, which has been in place since 2005."

 

 Photo by Artur Kurkowiak