French Tax Amnesty ends 31 December 2017.
Please note that the information herein is of a general nature and you should not act or refrain from acting on it without professional advice on the specific facts of your case. No liability is accepted by the author or Sykes Anderson Perry Limited in respect of this article. French tax law is a complex subject and the above is a basic outline only and is intended only as a general guide. Nothing herein constitutes financial advice.
For the past 4 years there has been a French tax amnesty scheme, under which taxpayers could declare foreign income and assets in return for reduced penalties. This will end on 31 December 2017 although declarations made before 1 January 2018 will still qualify for the scheme.
The scheme is run by the Service de traitement des déclarations rectificatives (STDR) and is viewed as a success with significant undisclosed assets being declared.
Some changes were made from 15 September 2016. The tax penalties under the scheme for deliberate evasion in the case of probates and gifts increased from 15 % to 25 %. They went from 30 % à 35 % in other cases.
On 1st October 2017, 50 States, including all of the European Union countries, will exchange information on bank accounts, rising to over 90 by 2018. This means Paris will have access to considerably more information which is probably why the amnesty is ending. This will include the name and address of the individual holding the account as well as the account balance. The reporting extends to trusts, companies and foundations.
Solicitor-Advocate and Chartered Tax Adviser