- Preliminary Ruling Context: The Sofia City Court referred a case involving “SINHRON INVEST” EOOD to the European Court of Justice (ECJ) concerning the imposition of a financial penalty on the company for a VAT-related criminal offence allegedly committed by its representative. The case raises fundamental questions about the presumption of innocence and the rights of defense under EU law, particularly in situations where parallel criminal proceedings against the individual are still ongoing.
- Legal Framework and National Law: The ruling hinges on the interpretation of Articles 4 and 5 of the Council Framework Decision 2005/212/JHA and Article 49 of the Charter of Fundamental Rights of the European Union, which outline the principles surrounding the legality of offences and penalties. Bulgarian law allows for financial penalties against legal persons even when criminal liability for the individual representative has not been established.
- Court’s Previous Ruling Reference: The ECJ highlighted that the questions posed were nearly identical to those addressed in a prior ruling (C-203/21, DELTA STROY 2003) from November 10, 2022. In that judgment, the Court clarified that national legislation permitting the imposition of criminal penalties on legal persons for offences linked to individuals who have not been allowed to contest their liability contradicts the principles outlined in the Charter.
- Declaratory Nature of Preliminary Rulings: The Court reiterated that its interpretations serve a declaratory function, clarifying the application of EU law as it should have been understood since its inception. Consequently, national courts are obligated to implement the ECJ’s interpretations, ensuring compliance with EU legal standards.
- Cost Implications: The ruling concluded that decisions regarding the costs associated with the proceedings should be determined by the referring court, indicating that the costs incurred in this case will be assessed in the context of the main action brought before the Sofia City Court.
Source Curia
