France Goes After Tax Havens

April 11, 2013 International Tax CooperationTax HavensTaxation in France

François HollandePARIS – France is taking bold new steps forward to try and lift the veil of secrecy surrounding tax havens by enforcing strict new reporting rules for financial institutions working offshore.

On April 10th the President of France François Hollande announced that the government will launch several new initiatives as part of “…a relentless battle against the excesses of money, greed and secret finance.”

The President announced that in an effort to “eradicate” tax havens in Europe and around the world, from 2015 the government of France will require all French banks to submit a report with details of all subsidiaries and entities which they control abroad, along with an explanation of their business activities, and full set of information on the profits garnered and taxes paid by the entities.

François Hollande indicated that the framework of the new reporting system could in the future be extended and implemented in other countries of the EU, and the requirements could eventually be imposed on large multinational corporations.

Explaining the benefits of the reporting rules, the President said that when the requirements are enacted “… it won’t be possible for a bank to hide transactions carried out in a tax haven.”

Further, the President revealed that a new government agency will be created and charged with investigating and prosecuting financial crimes, including fraud, tax evasion and corruption.

Photo by jmayrault