The fight against tax evasion is intensifying in France
The official representative of the government, Gabriel Attal, presented the plan to combat tax evasion.
A new tax intelligence service will be created to search for information and enforce the work of the Financial Investigation Service (SEJF). It mobilizes the methods prescribed by the Homeland Security Code to investigate and prevent the most complex and serious tax frauds. These methods will be directed against the hiding of assets abroad in tax havens, using trusts and other abuses of large multinational corporations.
Who will be checked:
wealthiest citizens and large multinational corporations that use fraudulent schemes. By 2027, the number of tax audits of individuals, the largest taxpayers, will increase by 25%. Also, 100,000 files of individuals will be processed. Priority will also be given to inspections of the largest companies while strengthening the tax support of companies: by 2027 – 8,500 small and medium-sized enterprises and 160 large groups. The introduction of electronic invoicing should make it possible to obtain additional income in the amount of 3 billion euros.
From 2024, a reform aimed at controlling the regulation of transfer prices will be carried out. In exchange for enhanced reporting obligations, companies will see a significant reduction in processing time for pricing agreement requests.
Illegal application of the mechanism of transfer of assets to the subsidiary in favor of the holding company (alternative liquidation by means of a merger) will be prevented by providing a 60-day objection period and ensuring that public services are informed.
As for punishments, it is planned that tax fraudsters may face new types of punishments in addition to the usual fines and possible prison terms:
- public works;
- temporary restriction of the right to vote.
A separate punishment in the form of a charge of inciting tax evasion is provided for providing fraudulent schemes. This will allow (independent of the tax audit and any proceedings against the persons who actually committed the fraud and their accomplices) to stop posting on the Internet and social networks, as well as to prosecute those who distribute legal and financial instruments that are designed to hide income or assets.