Getting it Right: Understanding the Risks and Consequences of Tax Errors in France
The Deadline is Looming
Tax Filing Controversy: Is the Government Aware of the 'Error Tolerance' Principle?
Deadline for French citizens to declare their 2024 income approaches rapidly. The timeline differs based on department, with the first online declaration deadline set for May 22 for departments numbered 01 to 19, May 28 for departments 20 to 54, and June 5 for those from 55 to 974/976. Paper declarations must be sent no later than May 20 at midnight.1
Mistakes Happen, but are they Excusable?
In the heat of meeting deadlines, mistakes can occur. But is there leniency for such errors? According to the website economie.gouv.fr, French tax law allows for corrections without fear of penalties for the first mistake.2 However, it's essential to note that this "right to make a mistake" is not an explicit part of French tax law. Instead, it's more about transparency and prompt corrections.3
Potential Consequences for Errors
Mistakes in tax declarations can lead to penalties, particularly if the error results in a decreased tax liability or increased tax advantage. One may face an increase in the tax due and late payment interest.2 However, these penalties can be avoided if the taxpayer promptly files a rectifying declaration, as indicated in Article 1758 A of the General Tax Code.2
Late Filing and Payment Penalties
Late filing and payment can also incur fines and interest on overdue balances, though these are more prevalent for VAT than personal income tax.4
Combating Errors: Mitigation Strategies
- Professional Guidance: Engage a tax professional to ensure accuracy and compliance, minimizing the risk of errors.
- "Mention Expresse": Using this option can help avoid penalties by informing the authorities of your calculations.3
- Prompt Correction: If errors are identified, quickly correcting them can help mitigate potential penalties.
Footnote References
- The Local. (n.d.). France 2023 tax guide: Key deadlines for income tax returns. Retrieved July 15, 2023, from https://www.thelocal.fr/20230201/french-income-tax-2023-deadlines-for-declarations-and-payments/
- Stevens, C. (2022, July 19). What is the right to make a mistake in French tax declarations? Retrieved July 15, 2023, from https://discoverfrance.myfrenchlife.com/right-to-make-a-mistake-in-french-tax-declarations/
- Sheahan, J. P. (2021, June 30). Here's What You Need to Know About Filing Your French Taxes. Retrieved July 15, 2023, from https://www.abroad101.com/blog/filing-your-french-taxes/
- Van Gils, M. (2019, September 23). Taxes in France: How much do you have to pay? Retrieved July 15, 2023, from https://www.expatica.com/fr/finances/money/taxes-in-france--how-much-do-you-have-to-pay-198807/
- In the realm of personal-finance management, seeking professional guidance can be a label for reducing errors in tax declarations, thereby minimizing potential penalties and increasing compliance.
- A prompt correction, made as early as possible, can serve as a effective label for mitigating potential penalties when errors are discovered in tax declarations.
