13. Tax Inspections in France

1. 13.1. Levels of Tax Control
2. 13.2. Tax Penalties & Sanctions
3. 13.3. Recovery of Unpaid French Taxes
4. 13.4. French Tax Claims
5. 13.5. Determination of Tax Status

13.5. Determination of Tax Status in France

If you are unsure of your tax status or the tax status of a proposed transaction, there is a process called rescrit fiscal, in which the tax authority are formally required to declare their position on your cirumstances.

The procedure grants you exoneration from later sanctions by the tax authority.

Under the procedure you would need to write to your Centre d’impôts invoking the right of rescrit fiscal, and seeking a formal declaration from them.

The use of this procedure is particulary useful if your circumstances are complex, or you are a new business and you wish to make use of a tax saving scheme and you are not sure if it applies in your case.

Conversely, you also risk attracting the interest of the tax authority on your affairs, so it is not a procedure to be used if you like your privacy!

If the tax authority do not reply within six months they are deemed granted acceptance and you are later relieved of any contrary action against you.