In a recent parliamentary report, the French government’s efforts to combat tax evasion were criticized as “inadequate.” The report called for strengthening the fight against fraud and allocating more funds for this purpose. Despite the anti-fraud plan presented by the government, the report claims that the results of tax audits remain mediocre and that staffing and resources are insufficient.
The report estimates tax fraud in France at between €80 billion and €120 billion and calls for massive investment in the fight against fraud, noting that this would generate significant revenue for environmental transition and emergency initiatives in society. The government recently launched the Fraud Assessment Council to quantify tax fraud in France.
The report also highlights the international dimension of the fight against tax fraud and calls on France to be at the forefront of tax diplomacy. It proposes an increase in the minimum corporate income tax and calls for greater firmness towards tax havens and tightening of measures around transfer prices.
The report expresses concern over the fall in staffing at France’s Directorate-General for Public Finance and calls for a strengthening of customs. It emphasizes the need for new technologies such as data mining not to replace human expertise and suggests establishing a common database for different anti-fraud services.
The report also criticizes the use of data mining software provided by private companies, which raises concerns about sovereignty and security. He notes that none of the recommendations from the previous report on tax evasion have been implemented and highlights the need for a strategy to detect tax fraud among individuals.