Tax authorities can penalize you if you have incorrectly completed your 2022 tax return. Fine, increase and interest on late payment… Fines incurred depend on the mistake made and whether it was intentional or not.
Here’s what you risk if you cross the yellow line while filing your 2022 tax return.
You are not completing your statement online
Although your accommodation has internet, you do not complete your declaration online at impots.gouv.fr but you submit a paper declaration.
What are you risking? Non-compliance with https://www.lerevenu.com/impots-et-droits/impot-sur-le-revenu/impots-2022-les-dates-limites-respecter-pour-votre-dec Declaration of income is punishable by a fine of $ €15 per permit not submitted on the forms. However, you will only have to pay it if this is the second year you have not respected it. If this is the first time, you will not be penalized.
health. If your residence is online but you don’t know how to use the internet, you can still use the paper permit. This tolerance is specifically directed at the elderly, disabled, or dependents.
Forgot to announce the rents
You rented your second home for a few weeks in 2021, but you forgot in good faith (without intent to defraud) the rent collection declaration.
What are you risking? If you correct the error by filing a correction return (via the open online correction service August-December or on paper), the additional tax will be increased by late payment interest at 0.1% per month, calculated from 1Verse July. Its rate will be doubled (0.2% per month) if the tax authorities realize your mistake, and the additional tax increases by 10%. However, late payment interest will be reduced by 30% (0.14% per month) and you will avoid a 10% increase if you settle the situation within 30 days after a request from the tax authorities.
health. If you report your mistake to the Public Finance Center before 1Verse July 2022, via your secure messaging system at impots.gouv.fr or by mail, you will not incur any penalty. You’ll also get away with late payment interest if your “forgotten” rents don’t exceed 5% of your taxable income.
You are reducing your taxable earnings
You made a profit of 50,000 euros in 2021 but you intentionally lowered it by 2,000 euros to avoid being taxed at the top of the tax ladder.
What are you risking? If the tax officer notices your willful mistake, he or she will correct you. You will then be charged an increased 40% of the additional tax to be paid, plus late payment interest of 0.2% per month. The increase will rise to 80% if the tax authorities prove that you have committed fraudulent maneuvers (false invoices, for example) to evade taxes.
health. You will incur the same penalties if you voluntarily increase the tax deduction for your donation or if you deduct your capital loss without proof.
Do not advertise a foreign bank account
You have a bank account or life insurance contract abroad and you have not attached Appendix No. 3916-3916bis to your declaration, which allows you to declare them.
What are you risking? You are responsible for paying a fine of €1,500 per undisclosed account or contract, increasing to €10,000 if it is residing in a “tax haven”. Even worse, if the tax authorities tax you on amounts withheld abroad, you would suffer an increase of 80%. And if he asks you to justify their origin and you don’t answer, he may charge them a gift fee of 60%.
health. If you hold cryptocurrency accounts (Bitcoin, etc.) abroad, you must also declare them in Appendix No. 3916-3916bis. Otherwise, you are liable to pay a fine of €750 for each unstated account or €125 for each inaccuracy, and the amounts are doubled if your value exceeds €50,000 at any time during the year.