France recovers billions in tax fraud and evasion crackdown

France recovers billions in tax fraud and evasion crackdown
03 Aug 2018

Measures aimed at stamping out tax fraud and evasion netted the French government a staggering €17.9 billion (US$20.8 billion) in 2017.

But according to an annual report from the country's General Directorate of Public Finance (DGFIP), the sum amounts to €1.6 billion (US$1.9 billion) less than in 2016 when €19.5 billion (USUS$22.7 billion) was retrieved. It is also €3.3 billion (US$3.8 billion) less than in 2015.

The figures highlight the success of the Ministry of Finance's so-called ‘drunk tank', a scheme that allows people with bank accounts hidden overseas to legalise their tax situation in return for light penalties. This measure alone was responsible for sums of more than €1.3 billion (US$1.5 billion) being retrieved in 2017, Le Parisien reported.

The neighbourhood of Bercy in Paris also recovered €9.4 billion (US$10.9 billion) in 2017 from old tax revenue owed by tax evaders following legal disputes, according to The Local.

If caught, defrauders usually face five years behind bars and €500,000 (US$581,632) in penalties.

Overall, France's tax earnings increased from €594 billion (US$691 billion) to €601 billion (US$699 billion) in 2017. The annual amount of income tax recovered also rose from €76.5 billion (US$89 billion) in 2016 to €77.6 billion (US$90.3 billion) in 2017.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Measures aimed at stamping out tax fraud and evasion netted the French government a staggering €17.9 billion (US$20.8 billion) in 2017.

But according to an annual report from the country's General Directorate of Public Finance (DGFIP), the sum amounts to €1.6 billion (US$1.9 billion) less than in 2016 when €19.5 billion (USUS$22.7 billion) was retrieved. It is also €3.3 billion (US$3.8 billion) less than in 2015.

The figures highlight the success of the Ministry of Finance's so-called ‘drunk tank', a scheme that allows people with bank accounts hidden overseas to legalise their tax situation in return for light penalties. This measure alone was responsible for sums of more than €1.3 billion (US$1.5 billion) being retrieved in 2017, Le Parisien reported.

The neighbourhood of Bercy in Paris also recovered €9.4 billion (US$10.9 billion) in 2017 from old tax revenue owed by tax evaders following legal disputes, according to The Local.

If caught, defrauders usually face five years behind bars and €500,000 (US$581,632) in penalties.

Overall, France's tax earnings increased from €594 billion (US$691 billion) to €601 billion (US$699 billion) in 2017. The annual amount of income tax recovered also rose from €76.5 billion (US$89 billion) in 2016 to €77.6 billion (US$90.3 billion) in 2017.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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