Tax inspection and disputes
You are a company established in France;
You are a French branch of a foreign company;
You are a foreign company and carry out operations in France
Taxation in France
The French tax system is essentially based on the principle of declaration. Taxpayers are required to establish their own taxation basis.
Even though there is a presumption of accuracy and honesty, the tax authority can correct inaccuracies which may take various forms (errors, inaccuracies or omissions).
The tax authority therefore exercises supervisory control regulated by the provisions of the French General Tax Code and the French tax procedure handbook.
Under certain specific conditions (hidden activity), the tax authority may need to establish a company’s taxable basis itself. When such a procedure, known as “taxation d’office” (automatic taxation) is underway, the burden of proof is on the taxpayer.
More generally, company tax inspection takes the form of an apparently contradictory procedure known as “accounting verification” during which taxpayers may be assisted. It consists of a set of operations carried out with the purpose of examining a company’s accounts at their premises and confronting it with certain evidence or material facts in order to check declarations already made and to ensure that any necessary adjustments are made depending on the tax affected (corporation tax, withholding taxes, VAT etc.).
The tax authority may consider that certain dealings or omissions constitute aggravating circumstances and may impose penalty adjustments, the rate of which can vary (40% or 80%).
Throughout the inspection procedure and after the reassessment proposal, the company may submit its comments, assert its rights and communicate its interpretation.
If a disagreement persists between the taxpayer and the tax authority concerning the basis of the adjustment, it is possible to apply to the competent court (judicial or administrative) which shall make a decision to either confirm the consequences of adjustment or cancel them in whole or in part.
To make sure that the adjustments do not cripple a company’s finances too heavily, it is possible under certain conditions to benefit from a suspension of payment while awaiting the final decision (administrative or judicial).
Altexis offers you support and assistance at any stage of your tax inspection as well as during the trial phase should the dispute be taken before the courts.
Our services include in particular:
- We will enforce all the guarantees granted to the taxpayer during the inspection phase;
- We will identify all the errors and flaws in the tax authority’s argumentation;
- Our assistance also covers the litigation linked to debt recovery