David Montagné / Photo credit: SERGE TENANI / HANS LUCAS / HANS LUCAS VIA AFP 11:05 am, May 10, 2023

Public Accounts Minister Gabriel Attal unveiled the government's battle plan to fight tax fraud. Among the detailed measures: the recruitment of 1,500 additional staff and a 25% increase in tax audits for the "largest assets". But what is tax evasion?

A turn of the screw against fraud and tax evasion. Minister Delegate for Public Accounts Gabriel Attal on Tuesday presented the executive's plan against tax fraud. Detailed measures to strengthen controls and sanctions against the "ultra-rich", while easing the pressure on the middle classes.

For this, the government has announced the recruitment of 1,500 additional staff in the teams by 2027, as well as the 25% increase in tax audits for the "largest assets". What is tax fraud?

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The desire to conceal income or property

Tax evasion is when you try to evade paying taxes intentionally. Clearly, it is the desire to hide income or property. A practice facilitated by the French declarative system. Each taxpayer must declare his own income. This is a shortfall for the State, which is thus deprived of resources. However, this risk has been reduced since employers and organizations transmit revenues directly to the administration.

Beware of controls and sanctions

The perpetrator of tax fraud incurs an increase of 80% (maximum), a fine of 500,000 euros and five years of imprisonment.

But for some taxpayers and companies, it is possible to play with loopholes or loopholes in tax law to avoid taxes. This is called tax optimization. The line is thin but it is legal.