€1000 cash limit to tackle fraud

CASH payments over €1000 could be banned in France under new plans to tackle tax fraud.

The finance ministry says it will consult on the change and a government decree could be passed by the end of this year reducing the cash payment limit from the current €3000.

The threshold applies to French residents. The limits for non-residents would be cut from €15,000 to €10,000.

The proposal comes after it emerged that tax checks on businesses brought in €12.3 billion euros last year - including €3bn in overdue penalties. The figure is up 14% on the previous year.

Tax inspectors at the finance ministry are also planning to reinforce their VAT checks on used car sellers, and take a tougher stance on failure to declare bank accounts held overseas.