Roche & Cie

Newsletter Heritage September 2016

30 Sep 2016

“De Ruyter” Who are the people excluded from the complaint procedure?

It follows the decisions of the Council of State of 27 July 2015 concerning the case of Ruyter that people affiliated to a social security scheme of another Member State of the European Union (EU) or the European Economic Area (EEA) and Switzerland, should not be subject to social security contributions which help to finance French mandatory social security schemes which only benefit only people affiliated with these schemes.

Social security payments wrongly claimed under this therefore may be subject to claims.

The government in a ministerial reply dated of September 20, 2016 just remember it did not consider (yet?) to extend the complaints procedure to affiliated persons outside the EU, EEA and Switzerland and in particular residents of overseas communities governed by Article 74 of the Constitution of October 4, 1958 (French Polynesia, French Southern and Antarctic Territories, Wallis and Futuna, Saint Pierre and Miquelon) could not file any complaint with the tax authorities considering the face that these communities have their own competence in tax matters.


European list of tax havens in preparation
The European Union has recently published the results of an evaluation conducted on all countries of the world in tax matters. This is the first step towards the establishment of a “black list” of tax havens, scheduled for the end of 2017.
This table was presented to the 28 Member States, which must now review it and determine which country “should be subject a formal review by the Union.

A list of “problematic” countries will be approved before the end of the year. The countries have at least one of the following criteria:
– Lack of transparency
– Existence of preferential tax regimes
– Absence of corporate taxes.
The countries concerned will then have to negotiate with the EU and if that fails, they will be placed on “common list of non-cooperative jurisdictions in tax matters”.
The European list is supposed to have more weight than the national blacklists.

Are you in the sight of the tax administration?

There are different types of tax audits and different reasons for them. How to know if you are in the viewfinder of the tax administration?

I have inconsistencies in my tax file
Each year 800,000 applications are examined without the taxpayer being aware. This is an examination “on records” made by the tax administration by comparing the information in the tax file.
The treasury has an automated processing aid in the selection and monitoring of specific files that allows it to automatically detect inconsistencies or anomalies nature lead to control

I have a heritage / significant revenues
More exceptionally, individuals may be subject to greater scrutiny in the context of a review of their individual tax situation (EFSP). This procedure particular to the tax authorities to access bank accounts of the taxpayer.
Only 4,000 controls of this type are performed each year.
In theory, all records are likely to be controlled, however, the tax administration recognizes focus on files at risk or fiscally important.
The “high stakes folders” (DFE) are thus systematically verified every three years to avoid any year falling within the scope of the prescription.

Included in this category of taxpayers whose :
– Gross income is above 270,000 euros or (500,000 euros for households whose wages or pensions represent 75% of revenues)
– Taxable gross assets on the wealth tax is higher than 3 million euros

In this perspective, Bercy has decided to extend the implementation of control poles income / wealth (COSP) experienced since 2013. These centers are responsible for checking all statements – income tax, wealth tax declaration inheritance, donation – filed by those taxpayers and examine the overall coherence between the level of income and the importance of their wealth.

I am in a particular or “suspicious” situation
The tax authorities also triggers controls when:
– It detects significant changes in the status of the taxpayer
– It detects changes in important values in a neighborhood. In this case, it will control the wealth tax declaration of taxpayers owning property there.
– The taxpayer used methods of tax exemption or optimization “at risk” and often frauded (DOM-TOM investment ,ZFU …)

What are the means of tax administration?

The tax administration has access to
– the declaration of employers,
– Pension funds,
– social organizations…) ;
– The information submitted by taxpayers themselves in their various statements.
– Ficoba for information on bank accounts in France
– Evafisc for bank accounts held abroad,
– Ficovie for life insurance and capitalization …
For the last three files, it is important to note that the administration has no information on the operations on the accounts or on their pay. It may just know its existence and its opening date.
In case of control, the tax administration has a right of communication, enabling it to obtain information from governments, banks, and more generally with any professional: Internet service providers, telephone operators fixed or mobile, real estate agent, trader, supplier of electricity, gas …
The tax administration recognizes consider denunciations but only if they are substantiated. Since the law of December 6, 2013 on the fight against tax evasion, the tax authorities may use documents or information unlawfully obtained (bank file stolen by an employee …) but only when they have been transmitted to it under its communications law. She can not use these documents if they are handed over directly outside any legal framework.