Tax Administration's Right of Reprise: Time Limits and Procedures for Controlling Undeclared Income

Extract

[...] The 12 April 2023, the verification begins and it ends on 10 June 2024, so it 14 months later. The hairdresser wants to have an answer to several of his questions. Is the accounting verification procedure regular, and what means does he have to delay or contest the recovery of the sums? I. The regularity of the procedure - Obligations and guarantees of the taxpayer In law, article L.47 of the LPF provides that balance sheet audit or a balance sheet examination cannot be initiated without the taxpayer having been informed by the sending or delivery of a verification notice or by the sending of a balance sheet examination notice? [...]

[...] In addition, the administration exercised its right to request additional informal information based on the article L.10 LPF, this is perfectly in line with the procedureprocedure. It is not yet a formal check, but a simple preparatory step. Finally, the jurisprudence Meyer does not seem not applicable here : it concerns cases of trisspecific cases, including in matiisre concerns bank accounts abroad and legal security. The case of Mr. ALAVOINE concerns undeclared income in France, without exceptional circumstances or abusive behavior from the administration. [...]

[...] The possibility of delaying the effects of recovery In law, article L.277 of the LPF allows the taxpayer to contest the recovery and request a payment deferment, under two conditions: on the one hand, he must contest the taxation, and on the other hand, he must offer guarantees such as a surety or a hypothecisthat. In the spaceisThis, Mr. not being in agreement with the correction, can therefore file a complaint and request a payment stay, provided that a valid guarantee is provided. This request would allow him to suspend the payment pending the examination of the dispute.and. III. The taxpayer's appeal In law, article R*190-1 of the LPF states that 'the taxpayer who wishes to contest must submit a complaint to the territorial service within a period of 2 months from the notification'. [...]

[...] He receives a letter on 9 February 2024 from the tax administration, relying on article L.10 LPF, and questions the regularity of the procedure and the application of the case law Meyer. To what extent can the tax administration control income and initiate a procedure despite the long time elapsed? I. The tax administration's right of reprise In law, article L.169 of the LPF states that "For income tax and corporate tax, the tax administration's right of reprise is exercised until the end of the third year following the end of the tax period to which the tax return relates."third yearthe year following that to which the tax is due. [...]

[...] Thus, in accordance with this article, the administration has the possibility of intervening in 2024 for revenues received in 2021. In the spaceisthis, M. Alavoine has received his revenues in 2021, and declared them in 2022. The right of recovery of the administration therefore goes untilto the 31st ofisDecember 2024. The letter received on February 2024 so it is perfectly within the legal deadline, and no prescription can be invoked. II. The request for justification In addition, Article L.10 of the same code provides that 'The tax administration controls the declarations as well as the acts used to establish taxes, rights, taxes and fees.' The third paragraph of this article adds that 'it may request taxpayers all information, justifications or clarifications related to the declarations subscribed or to the acts deposited's. » Finally, the Meyer jurisprudence of October comes to limit the right of recovery in the event of accounts to the éforeigner non declared and targets the necessitit is for the administration to act within reasonable deadlines. [...]