French Budget Sees EUR2.4 Billion Boost

September 29, 2015 Taxation in France

PARIS – France’s fight against tax evaders is paying dividends, and will help the government cut taxes for households.

On September 28th the Minister of Finance of France Michael Sapin announced that the upcoming budget plan for the 2016 year has been boosted by approximately EUR 2.4 billion, following a series of success in stamping out tax evasion.

The extra money will come as a result of France’s ongoing push to convince taxpayers with offshore accounts to declare the previously hidden funds, incomes and capitals, and to pay any resulting tax obligations, but enjoy some reduction in penalties.

It is expected that the government will recover EUR 2.65 billion directly from taxpayers.

Over recent years the government has already cracked down on a number of tax evaders who were using offshore accounts to hide their wealth, with approximately 85 percent of the tax cheats opting to use Swiss bank accounts.

The new funds will assist the government to cover the fiscal gaps created by the recent announcement that in coming years the budget will have a focus on cutting tax obligations for households, instead of businesses, as has been the focus in recent years.

In recent years the government of France has actively participated in the international exchange of leaked data containing information of uncompliant taxpayers.

Photo By: Adriano Aurelio Araujo