Minister warns on hidden accounts

FRENCH taxpayers who still have undeclared foreign bank accounts have been told bluntly to declare them now or face heavier penalties once the new law against tax evasion comes into force in the autumn.

Budget Minister Bernard Cazeneuve told MPs debating the bill that tax fraud costs France between up to €80billion a year and that in 2012 the state had imposed €18bn in penalties after tax investigations. That was €2bn up on the year before and he wants an equivalent rise in the coming year.

He warned people who still have undeclared accounts that those who came forward voluntarily would not face the same penalties as those whose tax evasion was uncovered by the authorities.

But cases would not be treated individually and the “scale” for the penalties would be 15% for so-called “passive” frauds – those who had inherited undeclared funds in accounts – and 30% for those who had actively hidden money from the tax office. The penalties would be imposed on top of the tax owed.

However, once the tax evasion law comes into force in autumn offenders will face up to seven years’ in jail and €2m in fines.
Photo: juhabee Juha Blomberg