TLDR: Penalties for undeclared foreign accounts in France include fixed fines ranging from €1,500 to €10,000 per account, an 80% surcharge on undeclared income, and a presumption of taxability for transfers made through unreported accounts. Penalties vary based on the severity of the omission and the location of the account.
Declaration obligation
The obligation to declare foreign accounts applies to all individuals, associations, and non-commercial companies domiciled or established in France. This obligation covers all accounts opened, held, used, or closed abroad, regardless of the amount deposited. The declaration must include the complete account details and, where applicable, the value of the deposited sums.
Penalties for non-declaration
Failure to declare a foreign account is penalized with a fixed fine of €1,500 for each undeclared account. If the account is located in a state or territory without an administrative assistance agreement with France, the fine increases to €10,000 per account. This penalty applies regardless of whether taxable income exists in the account and is not proportional to the deposited balance.
Surcharges on undeclared income
If the sums in the undeclared foreign account constitute taxable income, the tax authority applies an 80% surcharge on the taxes due. The surcharge is added to the ordinary tax and the fixed fine. The taxable base is determined based on the movements and balances recorded in the account, with the taxpayer allowed to provide counter-evidence.
Presumption of taxability
Transfers of sums to or from an undeclared account are presumed to be taxable income, unless proven otherwise, and are subject to a 40% surcharge. This presumption also extends to unreported life insurance contracts and financial investments.
Inaccuracies or omissions in the declaration
Inaccuracies or omissions in the declaration are penalized with a fine of up to 40% of the tax due on incorrectly declared sums. If the taxpayer fails to provide the information requested by the tax authority, a fine of €1,500 is applied for each unfulfilled request.
Non-convention states
Accounts located in states or territories without an administrative assistance agreement with France are subject to stricter controls and harsher penalties. The fine for non-declaration is €10,000 per account, and the authority may conduct in-depth audits of financial movements.