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TAX DECLARATION

Late fees, fines and charges: What you risk by missing French tax deadlines

The deadlines for the annual French tax declaration are upon us, but what are the penalties if you either miss the deadline or fail to file your return at all? We take a look at the sanctions.

Late fees, fines and charges: What you risk by missing French tax deadlines
You risk financial penalties if you miss tax deadlines. Photo by PHILIPPE HUGUEN / AFP

The annual Déclaration des revenues – income tax declaration – involves virtually everyone in France filling out a form giving detailed information on their income to French tax authorities.

If you live in France, it’s almost certain that you will have to complete this – even if you’re a salaried employee and your tax has already been deducted at source, or if all your income comes from outside France (eg a pension received from the UK or USA).

There are only a very few exemptions to the requirement to fill out the tax declaration and they are listed here

Declarations for the 2021 tax year opened in April 2022 and the deadline is either late May or early June, depending on where you live – find the full calendar here

But what happens if you miss the deadline?

For most people there is a staggered system of late charges.

If you are less than 30 days late your overall tax bill can be increased by up to a maximum of 10 percent.

Once you receive a notice of late payment, the overall bill can increase by up to 20 percent, or 40 percent if you have still not filed within 30 days of receiving the later payment notice.

You will also be charged interest on late payments.

What if I don’t pay income tax in France?

If you have no taxable income in France – for example your only income is a pension from another country – then you still have to fill in the declaration.

If you file late the increases cannot be applied, since your tax bill is €0, but you can instead be liable for a late fee of €150.

What if I have exceptional circumstances?

If you know that you will not be able to file in time, you can ask the tax office for a remise gracieuse (remission) in order to avoid late fees and penalties.

You will need to outline your reasons for not being able to file in time and while there isn’t a list of accepted excuses, the reason must be exceptional circumstances such as serious illness or the death or a loved one.

If you have previously missed deadlines, the tax office will be less likely to accept your request.

The request should be made by June 29th either in person at the tax office or through the messaging system in your online tax page.

What if you don’t declare everything?

If you have not declared income which is subsequently discovered by authorities, the increase in your overall tax bill can be up to 80 percent – the maximum penalty is usually reserved for people who have deliberately tried to hide parts of their income.

We have a full guide to what you need to declare HERE, but the basic rule of thumb is that you need to declare everything, even if it is not taxable in France, eg income from a rental property in another country.

France has dual taxation agreements with countries including the UK and USA so if you have already paid tax on income in another country you won’t need to pay more tax in France – but you still need to declare it.

What about foreign bank accounts?

Another item that frequently catches out foreigners in France is overseas bank accounts.

If you have any non-French bank accounts, you need to list them on your tax declaration, even if they are dormant or only have a very small amount of money in them.

This also applies to any foreign investment schemes you have, such as life insurance policies. 

The penalty for not listing accounts is between €1,500 and €10,000 and that applies for each account you fail to declare. 

What if I made a mistake on my declaration?

In 2018 France formally enshrined the ‘right to make mistakes’, giving people the right to go back and correct their declarations without attracting a penalty.

So if you realise you have missed something off or added the wrong info you can either go back into your online declaration and correct it or, if you file on paper, visit your local tax office.

However the ‘right to make a mistake’ does not extend to late filing.

What if I didn’t make a declaration?

The French tax system is often confusing for foreigners, with many people wrongly assuming that if they are not liable for tax in France then they don’t need to fill in the declaration.

For people who persist in not making the declaration, even after the arrival of the notice of default, tax authorities can make an estimate, based on earnings and lifestyle, and present the bill.

However for new arrivals in France it’s likely that they will not be registered with the tax office and will therefore never receive a notice. 

In this instance it’s always better to come clean – if you have made a genuine mistake and you approach the tax office  (rather than waiting for them to watch up with you) you will usually be dealt with quite leniently. 

How can I get help?

If you’re struggling with the system, there are ways to get help.

The tax office has an English language information page here, and a dedicated helpline for internationals on + 33 1 72 95 20 42.

You can also visit your local tax office, every town has one and you can simply turn up without appointment and ask for help (although if the office is small and your query is complicated you may need to make an appointment for the full discussion). Surprising as it may sound, employees at the tax office are generally pretty friendly and helpful and can guide you through the forms you need to fill in.

If your tax affairs are complicated and/or your French is at beginner level, it may be better to hire an accountant to ensure that everything is in order. You can find some tips on getting professional help HERE.

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POLICE

Your questions answered: Legal rights as a foreigner in France

The French Constitution offers broad legal protection to anyone in France from the right to trial to the right to legal advice, but there are some scenarios specific to foreigners in France.

Your questions answered: Legal rights as a foreigner in France

What are my rights if I am arrested or imprisoned?

If you are arrested you have the same rights as a French citizen to legal advice, phone calls, bail and a full trial – full details HERE.

There are some extra things to be aware of however;

Once arrested you have the right to an interpreter during police interviews.

You have the right to call your Embassy, although the help the Embassy can offer you is much more limited than many people think.

If you are released while awaiting a court hearing you will usually have to hand over your passport and undertake not to leave the country. If you are not a French resident, the judge can assign you a residency address in France.

If you are found guilty and imprisoned in France you maintain several rights, such as the right to vote (if you have French citizenship). France’s interior ministry has a handout detailing these rights, HERE

Can I appeal against my sentence?

Yes, you have the right to appeal a court’s decision.

Keep in mind that this can be a lengthy process with very specific deadlines – and it can go either way, so you risk a sentence being increased.

If you are acquitted in court,  French law also allows for the prosecution to appeal against your acquittal.

I am the victim of a crime, what are my rights?

In France, the role of the state and the prosecutor is to protect the peace, this means that if someone commits a crime against you, it is up to the state to decide whether to move forward with criminal proceedings.

It’s not up to the victim to decide whether or not to press charges.

Conversely, if the state chooses not to go ahead with criminal proceedings, but you (the victim) want them to press charges, you have the right to appeal against their decision to drop the case.

Can I be expelled from France for committing a crime?

Yes, although this is generally reserved for people who have committed serious crimes such as violent crime, drug-trafficking or terror offences.

If you have been jailed for a serious crime in France you can be served with an ‘interdiction du territoire français‘ – a ban from French soil – on your release. These are reserved for the most serious offences and simply being incarcerated does not necessarily lead to expulsion.

If you are a full-time resident in France but not a French citizen, then being convicted of a crime can mean that your visa or residency card will not be renewed. This is again usually reserved for people who have committed very serious crimes, but in certain circumstances residency can be withdrawn for less serious offences such as driving offences or begging. 

READ ALSO What offences can lose you the right to live in France?

If you have French citizenship it’s virtually impossible for your to be expelled from France although in some rare cases – usually connected to terrorism – citizenship of dual nationals can be revoked.

What are the rules for minors?

Minors in the French legal system have some specific rights. The EU has laid out the specific rights of minors, which apply in France as well, and apply from the time of arrest.

  • Right to be be quickly informed of legal rights, and to be assisted by your parents (or other appropriate persons)
  • Right to be assisted by a lawyer
  • No prison sentence should be imposed on a minor if they have not been assisted by a lawyer during the court hearings. All measures should be exhausted to avoid a child being imprisoned.
  • Right to be detained separately from adults if sent to prison.
  • Children should not be required “to reimburse the costs of certain procedural measures, for example, for individual assessment, medical examination, or audio-visual recording of interviews.”
  • A child’s privacy should be respected and “questioning will be audio-visually recorded or recorded in another appropriate manner.”
  • Repeatedly questioning children should be avoided.
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