Since October 2018, a new law related to the “fight against fraud” has been passed which aims to promote the better detection and apprehension of fraud, especially tax-related.
The new text now forces the tax authority to notify the public prosecutor of the facts it examined under its audit and which led, on claims of more than 100,000 Euros for both legal and natural persons, to a penalty increase of 100% (opposing a tax audit) or 80% (abuse of rights or corrupt practices), or if the taxpayer was recurrently subject to a penalty of 40% during the course of the last 6 years (willful default).
Under these thresholds, the procedure remains unchanged. The FTA will be transferred to the public prosecutor only after its review.
This new legislation must be well known by all directors mentionned on Kbis of firms as they will be directly injured.