10: Tax evasion

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1740 B

Article 1740 B

French General Tax CodeIn force
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Updated 7 Nov 2023

I. - All of the facts established by a flagrante fiscale report, mentioned in I to I ter of Article L. 16-0 BA of the Book of Tax Procedures, shall result in the application of a fine equal to €5,000.

The amount of this fine is increased to €10,000 if, on the date of the finding of flagrante fiscale, the turnover excluding tax or the amount of gross revenue exceeds the limits provided for in 1 of articles 50-0 or 102 ter or in I of Article 69, depending on the nature of the activity. It is also increased to €10,000 if, on this same date, the taxable income established under the conditions provided for in article 1649 quater-0 B bis exceeds the threshold for the third bracket of the income tax scale set out in I of article 197.

This same amount is increased to €20,000 if, on the date of the finding of flagrante fiscale, the turnover excluding tax or the amount of gross revenue exceeds the thresholds provided for in 1° and 2° of Article L. 162-4 of the code of taxes on goods and services or in b of II of article 69, depending on the nature of the activity. It is also increased to €20,000 if, on that same date, the taxable income established under the conditions set out in Article 1649 quater-0 B bis exceeds the threshold for the fourth bracket of the income tax scale set out in I of Article 197.

This same amount is increased to €30,000 if, on the date of the finding of flagrance fiscale, the taxable income established under the conditions provided for in Article 1649 quater-0 B bis exceeds the threshold of the fifth bracket of the income tax scale set out in I of Article 197.

II. - When the penalties provided for in c of 1 of Article 1728 and in b and c of article 1729 and the fine provided for in l'article 1737 are incurred for the same acts as those referred to in I to I ter of Article L. 16-0 BA of the Book of Tax Procedures constituting flagrante fiscale and in respect of the same period, these shall only be applied if their amount is greater than that of the fine referred to in I of this Article. In this case, the amount of this fine is deducted from the amount of these penalties and fines.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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