Expats
living in France should already be familiar with the form 3916 – Comptes
bancaires à
l’étranger – which is filed with the annual tax déclaration and
discloses details of foreign accounts held.
New
legislation designed to catch tax fraudsters hiding money offshore (see news
reports regarding the alleged activities of ex-Minister Jerome Cahuzac) could
also apply to the monsieur-in-the-street who still has the odd UK bank account
which he fails to remember or include on the annual form 3916 . So now is the time to review all those small
accounts that you may have opened years ago and which have lain virtually dormant
for many years – tidy up your banking affairs and make sure you do not fall
foul of the rules.
If, during
this financial spring-clean, you find some accounts which never made it on to
your form 3916, then make a voluntary disclosure. Governments are now particularly keen on
sharing financial information about you and you would be astounded how, in just
a few clicks of the mouse, this
information is available cross-border to the respective tax authorities.
For those
with larger, undeclared, foreign account
balances, the net is closing! The Budget Minister, Bernard Cazeneuve, has told
the French députés that if tax evasion is discovered, harsh penalties at the
rate of 30% will be imposed on top of the tax due but for individuals making voluntarily
disclosures the penalties will be scaled back at just 15% plus the tax due for what
he called “passive” frauds where, for
example, there are inherited accounts
containing undeclared funds.
If you need further advice, please contact us on info@petersonsims.com