New: The Constitutional Court has invalidated the 5% fine set out in the tax legislation for taxpayers with undeclared accounts abroad.

Cons. court no. 2016-554 QPC 22 July 2016

Our comments: In the upcoming budget currently under discussion, the government has included a new mechanism intended to replace the 5% fine. The bill plans an 80% increase in the tax due in the event of amendment of the sums or assets on an account held abroad which should have been declared. If it is successfully passed, this new sanctioning system would apply to declarations which should be filed as soon as the budget comes into force (towards the end of December 2016, in theory).

Depending on their situation, the taxpayers concerned are therefore advised:

  • for those who have received a 5% fine: to file a claim very quickly because the declaration of unconstitutionality is applicable to fines handed down before 24 July 2016 which have not yet received a final judgment (lawsuit pending) or for which a claim can still be made;
  • for those who hold an undeclared account abroad: to file a request for the adjustment of their situation as soon as possible with the department which processes corrective declarations before the new sanctioning system comes into force.