French Tax Administration and Statute of Limitation : Part 2

The Tax Administration must meet deadlines when conducting audits.

 

According to the book of tax procedures, the recovery time expires at the end of the third year following that in which the tax is due. It should be noted that if the right of occult activity resumption of Directors is six.

There are also particular periods that can extend the recovery time. This is the case in error about the nature of the charge or the place of taxation, omissions or inadequacies revealed by a proceeding in court or by a contentious claim, following a succession of fraudulent activities (two-year extension) or recourse to international administrative assistance. There is also a particular time for VAT tax. The list is not exhaustive.

As part of an omission revealed by the courts under Article L.170 of the LPF, omissions or inadequacies taxation can be repaired by the tax authorities until the end of the year following that of the decision that closed the proceedings and, at the latest until the end of the tenth year following that for which the tax is due.

In the context of a litigation claim, where a taxpayer requesting the release or reduction of taxation, the tax authorities may, according to Articles L.203 and L.204 of the LPF, perform or seek compensation in the boundary of the disputed tax, rebates between justified and recognized the shortcomings and omissions of any kind found in the base or the calculation of the charge during the investigation requested.

As part of fraudulent activities, when the Tax Administration discovers that a taxpayer was engaged in such conduct and whether it has filed a complaint against him, she may carry out controls and enhancements for the two years exceeding the ordinary limitation period. This extension of time is applicable to the authors of acts, their accomplices and persons on whose behalf the fraud was committed.

As part of an extension in the event of recourse to international administrative assistance, if the administration has conducted an inquiry to a foreign authority may, under Article L.188 A LPF, repair or omissions tax deficiencies until the end of the year following that of the administration's response to foreign and later until the end of the fifth year following that for which the tax is due.

As part of the estate tax, section 257-7 °-1-a paragraph 2 provides that the right of recovery of tax administration can not take place until the end of the third year following the during which occurs the issuance of building permits or commencement of construction, the estate tax is due on sales or contributions of land for construction.

If tax penalties punishing violations of provisions governing the assessment and payment of tax, the limitation period expires at the same time and same conditions as in single and fee increases related to taxes which they relate.

Other tax penalties may be commenced at the end of the fourth year following the year in which the offense was committed.

The prescription is to extinguish all obligations that the taxpayer vis-à-vis the law and paying taxes. The mere passage of time equal to the payment of tax. Clearly, if you have not paid your taxes (so do not advise you to do) and that the recovery time has elapsed, the Tax Administration will no longer work against you. It may not, in principle, carry or control or relief.

Caution: The Tax Administration may still carry out investigations, inspections and in back taxes. It depends, in practice, type of income concerned. Moreover, even after the expiration of three years generally, the tax authorities can always check out some income.

The waiver of the requirement is impossible. A taxpayer can not waive the requirement in advance but still may waive the requirement gained, that is to say that the taxpayer may after the expiry of the limitation period that would pay the amounts otherwise due pay.

This is understandable. Indeed, if taxpayers could waive the requirement, they would escape de facto tax payment. He would say, "I waive the time limitation like that tax administration can not control myself" and it would not pay his taxes. As there is more recovery time the Administration could no longer act.

This recovery time is done to protect the taxpayer against the actions of the Tax Administration. This is to ensure that the taxpayer is under permanent threat of a tax audit operations for old or very old. Somehow these deadlines validate the status quo. However, these deadlines must allow the tax administration can do its job and making the controls as it deems necessary to carry out.

The number of times required by the legislation is important and makes the complex subject. The intervention of a tax lawyer, as for all stages of the proceedings of fiscal control is necessary to control the tax authority's compliance with the procedures and deadlines that are imposed. Upstream, the fiscal management of a company or an individual can be entrusted to a tax lawyer that his clients hold harmless against the wrath of the Tax Administration.

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