TLDR: In France, errors in a tax return result in a 40% surcharge for deliberate misconduct or an 80% surcharge for fraudulent schemes or abuse of law. Omissions or inaccuracies in documents to be submitted are penalized with fixed fines (€150) or proportional fines (€15 per infringement, with a minimum of €60 and a maximum of €10,000). Tax penalties apply independently of criminal penalties, and the non bis in idem principle cannot be invoked.
Surcharges for errors and omissions in declarations
Inaccuracies or omissions found in a declaration or act influencing the tax assessment or liquidation, as well as the undue refund of a tax credit, result in a surcharge of:
- 40% in case of deliberate misconduct;
- 80% in case of abuse of law, fraudulent schemes, or partial concealment of the price stipulated in a contract.
This surcharge also applies to declarations filed late or acts submitted late for the registration formality, along with late payment interest.
Fines for non-submitted or inaccurate documents
Failure to submit a document to the tax authorities within the deadline (excluding articles 1728 and 1729 of the CGI) is penalized with a fixed fine of €150.
For documents mentioned in article 1729 B of the CGI, each omission or inaccuracy is subject to a fine of €15, with a minimum of €60 and a maximum of €10,000 for documents to be submitted simultaneously. This fine does not apply in case of a first infringement committed in the current year and the three previous years, if the person concerned has corrected the infringement spontaneously or within 30 days following a request from the administration.
Specific penalties for transfer pricing declarations
Failure to file form n° 2257-SD (CERFA n° 15221) related to transfer pricing within the deadline results in a fine of €150. In case of omissions or inaccuracies in this declaration, the fines provided for in article 1729 B of the CGI apply.
Cumulative tax and criminal penalties
Tax penalties (surcharges, fines) are applicable independently of criminal penalties. The non bis in idem principle cannot be invoked to avoid double punishment.
Exceptions and mitigating circumstances
No penalty is applied in case of a first infringement for the period considered and the three previous periods (N to N-3), if the error is corrected spontaneously. This rule also applies to omissions or inaccuracies in declarations filed within the deadlines.