Tax inspection: how does the Administration check your tax returns?

by | May 26, 2023 | Corporate taxation, Tax inspection | 0 comments

Paying taxes is a legal obligation for all taxpayers. However, it is important to know that the tax authorities can check taxpayers’ tax returns for compliance. In this article, we’ll take a look at how tax returns are checked by the tax authorities, from the elements known in the taxpayer’s file to the various stages of the check in the event of inconsistency. We will also look at how the taxpayer can respond to requests from the tax authorities to clarify any errors and avoid an in-depth examination of his situation.

First inspection of tax returns

The first check carried out by the tax authorities consists of verifying that the taxpayer has filed the various returns on time, and that they contain no errors, deficiencies, inaccuracies, omissions or concealments. This control is carried out from the Administration’s office, based on known elements in the taxpayer’s file.

Tax authorities’ requests for information and justification

In the event of inconsistency, the tax authorities may send the taxpayer a simple request for information, or a request for clarification or justification. The taxpayer has 30 days in which to respond to the request, and 2 months in which to request clarification or justification, extendable on written request. If the response is deemed insufficient, the taxpayer is given a further 30 days’ notice to provide further details, and if no response is received, the tax authorities may impose an automatic tax.

The different stages of a tax audit

Depending on the taxpayer’s response, the tax authorities may decide that the taxpayer’s situation is compliant and take no further action, rectify the shortcomings identified by sending a rectification proposal, or carry out a more in-depth audit, after informing the taxpayer in advance.

Checking tax returns can be a source of stress for taxpayers. To avoid any inconvenience, it is important to respond to requests from the tax authorities and to clarify any errors. Altertax tax lawyers are on hand to advise you on the tax benefits of these schemes and help you respond to requests from the tax authorities. Please do not hesitate to contact us.

The complex paths of taxation are not a problem for us.
Gain peace of mind with experts, plan your strategy!

Articles similaires

Découvrez nos articles similaires, mais n’oubliez pas de nous contacter, c’est mieux !

France’s tax police: towards a repressive tax policy

The fight against tax fraud has become a major preoccupation for tax authorities in France. In response to this problem, the government has introduced a new tool: the tax police. This measure is an important step in the crackdown on tax crime, which is becoming increasingly severe. In this article, we’ll look at the introduction of the tax police in France and its impact on tax policy, as well as the importance of calling on the services of a tax lawyer specializing in criminal tax matters.

What is the annual 3% contribution on real estate?

Legal entities that own real estate in France are subject to a tax of 3% on the value of their properties. This tax on the fair market value of real estate was introduced by the 1983 Finance Law with the objective of ensuring visibility of the chains of ownership of properties by French and foreign entities, allowing the identification of shareholders and thereby verifying the proper application of the Wealth Tax (ISF), now replaced by the Real Estate Wealth Tax (IFI).

Home visits based on mere suspicion of tax fraud

In two rulings handed down on February 15, 2023 (Cass. com., February 15, 2023, no. 20-20.599 and Cass. com., February 15, 2023, no. 20-20.600), the Commercial Chamber of the French Supreme Court confirms that the tax authorities can initiate home visits against a taxpayer on the basis of mere suspicions of tax fraud.

What is the 3% annual contribution on buildings?

Legal entities owning real estate in France are liable for a 3% tax on the value of this real estate.
This 3% tax on the market value of real estate was introduced by the 1983 Finance Act, with the aim of ensuring the visibility of chains of real estate ownership by French and foreign entities; making it possible to obtain the identity of associates and thus verify the correct application of the wealth tax (ISF), now replaced by the real estate wealth tax (IFI).

VAT: towards the end of reduced rates?

Faced with inflation, the energy crisis and environmental challenges, there is a strong temptation to implement general or targeted VAT cuts. However, in its report on VAT, the Conseil des prélèvements obligatoires (CPO) points out that these reduced rates are costly for public finances, economically inefficient and rarely evaluated. Explanations.

The fight against money laundering: a system with room for improvement

In its report on developments in France’s anti-money laundering system between 2012 and 2022, published on February 23, 2023, the French Audit Office (Cour des Comptes) takes stock of France’s anti-money laundering system.
While, like the Financial Action Task Force (FATF) in its latest 2022 evaluation report, the Cour des Comptes notes significant progress in the fight against money laundering, certain shortcomings persist.