Macron’s “right to make mistakes” for your 2017 return?



During his campaign, Emmanuel Macron displayed his desire to facilitate the administrative procedures of the French. The new President of the Republic wishes to introduce a “right to error” for administrative formalities, as soon as possible.

Emmanuel Macron’s reform plan, which went almost unnoticed during the presidential campaign, could quickly upset the French administration. Announced in the candidate’s program for En Marche!, The “right to make mistakes” is a legal principle aimed at simplifying administrative procedures for French people with the administration. The measure would consist in not sanctioning errors and forgetting in good faith, in the event of the first failure noted by the tax authorities, URSSAF, etc. Errors relating to the criminal law or the safety of others would however be excluded from the reform.
In his program, Emmanuel Macron foreshadowed that “the heart of the battle does not [serait] plus the sanction but the advice and support “. A measure specifically intended for employers, entrepreneurs, self-employed workers and farmers … But not only. Taking regularly the same examples, the candidate Emmanuel Macron had implied that the right to the error would also apply to the procedures of individuals. In his project, was described the case of a couple of grandparents who forgot to declare the accommodation of their granddaughter, who had found a job near home In this situation, the couple was exposed to a loss of compensation, or even to penalties. “They can tomorrow assert their right to make mistakes and no longer pay penalties” indicated the program of the new president of the Republic.

When is “tomorrow”? No response yet. But in the same way as for his reform of the Labor Code, Emmanuel Macron could proceed by ordinance, in order to accelerate the implementation of such a measure. What about your income tax, therefore ? Don’t count on it too much for this 2017 tax campaign. Already because no mention of a new right to error for the declaration of income or assets (in the case of ISF statement) has been made, whether by the President or a member of his bodyguard. Second, because even if adopted by ordinance, such a device could not come into force before the reporting deadlines. You are therefore advised, once again this year, to avoid any error on your tax return.

What is the risk in the event of an error on his declaration?


What is the risk in the event of an error on his declaration?

Your income tax return must be completed with care. Better to avoid mistakes. The tax administration does not hesitate to sanction omissions, inaccuracies and inaccuracies.

You have not yet declared your income tax ? It is time to take an interest. Especially if you declare by paper form, since you only have a fortnight to send your print to the taxman (consult the tax reporting deadlines). The tax return takes a little time and better not to tackle it at the last moment, in order to avoid any error. An omission, voluntary or not, or an inaccuracy can be expensive. The tax authorities have laid down penalties for taxpayers who make errors on their declaration, errors which lead to a reduction in the tax payable or the increase in a tax benefit. It is possible to avoid these sanctions by correcting errors by means of an amending declaration. The correction must be carried out spontaneously or within 30 days following an amicable recovery from the taxman. After this time, the sanctions fall. An imprecision in the calculation of the tax leading to a reduction of more than 5% of it leads to an increase of 10% of the amount due. Late payment interest may also be applied, up to 0.40% per month. And in case of abuse or fraudulent maneuver, heavier penalties are applied.

We talk about tax evasion when the taxpayer willfully omits to declare, deliberately conceals income or property subject to income tax, or if, more broadly, the latter is organized so as not to pay tax. In this case, the tax administration directly applies an increase of 80% of the tax, in addition to default interest. And the sanctions can even go further. In the event of the discovery of fraudulent behavior, the tax authorities may initiate criminal proceedings. Regardless of the tax sanctions, the dishonest taxpayer faces a 500,000 euro fine and 5 years imprisonment. Sentences increased to 2 million euros and 7 years imprisonment when fraud is accompanied by the production of false documents or if there is the existence of screen organizations established abroad.

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Please note, some works are no longer eligible for the tax credit


Please note, some works are no longer eligible for the tax credit

If it is too late to do some work and hope for a tax credit for 2017, you can start the process for next year. Please note, however, that certain works no longer give entitlement to the tax benefit.

A tax credit, whether it is granted for work in the main dwelling, the employment of a person at home or childcare, relates to the expenses incurred during the year of collection of the taxable income. In other words, only expenses incurred before December 31, 2016 entitle you to possible refunds for theincome tax 2017. In the case of works, it is therefore too late to benefit from them this year (unless, of course, you paid for works in 2016). But don’t worry: most of the systems are renewed from one year to the next. Well almost…
Certain works that opened the right to a tax credit are no longer eligible for the benefit. For example, until 2013, it was possible to obtain a tax credit for energy-saving work carried out in rented accommodation. The 2014 finance law eliminated the benefit of this tax credit to landlord lessors. If they can benefit from the deduction of certain costs from their property income, landlord lessors can no longer benefit from the tax refund. Ditto for new homes. Since 1st January 2013, only dwellings completed for at least 2 years can give you a tax credit for works.

On the equipment side, the devices are regularly reviewed. For example, since 2012, electric traction elevators no longer open the right to a tax credit for personal assistance work. Two years later, the 2014 finance law also excludes ISCED (tax credit for energy transition) photovoltaic panels and rainwater recovery systems. If it is still possible to benefit from certain tax advantages for the recovery of rainwater, such as a VAT reduced to 10%, plus question of tax credit. Aid granted since 2014 retains certain conditions inherent in CITE, but it is now granted by local authorities (municipality, region, etc.).
More recently, these are wind turbines that have been removed from the device. Since 1st January 2016, no expense for the purchase or installation of a domestic wind turbine is eligible for the tax credit. In the same way as for rainwater recovery systems, the installation of a wind turbine can be subsidized by local aid. But in both cases, a simple reduction in the VAT rate to 10% can be granted. Far, therefore, from the 30% CITE refund.

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Beware of tax scams!


Beware of tax scams!

Each year, the reporting period returning, the tax authorities warn of various fraudulent practices aimed at defrauding taxpayers. The year 2017 is no exception to the rule.

[Mis à jour le 3 mai 2017 à 10h04] “Watch out for fraudulent emails”. This alert, launched by the Directorate General of Public Finances, was sent to all those who declared last year via the Internet. If you are in this case, you have also received an email from the tax administration, informing you of the connection procedures for the online declaration service. This year again, and faced with the resurgence of fraud attempts, the DGFiP wrote the following on this email: “Beware of fraudulent e-mails! For your security, never reply to an e-mail asking for your bank details”. The tax authorities note each year an increase in fraudulent emails, texts and calls aimed at usurping his identity and that of his agents, from taxpayers. The objective of the impostor? Recover some of your personal data, including your bank details, by a process now well known: the “phishing“(or phishing).

The declaration period helps, the fraudsters pretend to be the taxman and send you a message promising you a refund ofincome tax, if you communicate your bank details as soon as possible. The messages are sometimes very well imitated, using the form of official DGFiP emails, their name and logo. So beware of all messages asking for your bank details. “You are never asked for a credit card number for the payment of a tax or the reimbursement of a tax credit, or to complete your personal details “, reminds the tax administration, on the site impots.gouv.fr.

Another technical technique of widespread scam: “vishing” (contraction of “voice” and “phishing”, in the language of Shakespeare). The scam comes from a message you receive on your voicemail. The crooks tell you about an anomaly in your tax file, or a new tax reduction to which you are entitled and invite you to call them back as soon as possible, in order to benefit from the advantage or to avoid sanctions. The number communicated is obviously a premium rate number.

To deal with these scams, the tax administration has published a number of practical sheets on its site and continues to warn taxpayers via information emails. It also redirects Internet users to the reporting service from the Ministry of the Interior, in order to notify any fraudulent e-mail or site. You can also report unwanted numbers by sending “spam sms” to 33 700, followed by the number concerned (you can also report it via 33 700 website). Finally, you can contact by telephone the toll free number set up by the government: 0 805 805 817.

who will pay the 2 euros more?


Doctor consultation: who will pay the extra 2 euros?

Since May 1st, the price of the medical consultation goes from 23 to 25 euros. What change for you? Who pays the difference? Point.

[Mis à jour le 2 mai 2017 à 09h40] Going to your doctor now costs you more. Since 1st May, the price of the consultation with a general practitioner went from 23 to 25 euros for an adult and from 28 to 30 euros for a visit to the pediatrician or the general practitioner, for a child under 6 years of age. A revaluation which was planned since summer 2016 and the adoption of the new tariff agreement between the Health insurance and the liberal doctors. However, a number of medical unions opposed it. Other tariff increases are also provided for in the said agreement. Consultations with a psychiatrist, a neuropsychiatrist or a neurologist will also increase from 2 euros to 1st July 2017. Next November, the visits to the cardiologist will in turn be increased by 2 euros. These basic rates had never been changed since 2011.

However, this revaluation should not affect you. If, like almost 95% of French people, you are covered by complementary health insurance, then only the flat-rate contribution of 1 euro will remain at your expense. (this is already the case today, for patients over 18 years old). The share covered by Social Security remains unchanged, namely 70% of the remaining 24 euros. Your supplement reimburses 30% of the amount of the consultation. Thus, for a consultation of 25 euros, Social Security takes 16.80 euros at its expense (70% x 24 euros whereas before it supported 70% x 22 euros) and your complementary 7.20 euros (30% x 24 euros). So you still only have one euro to pay out of your pocket. The generalization of third-party payment In the meantime, you must always pay the healthcare professional during your visit and wait for reimbursements from your health insurance and Social Security. Unless your doctor already applies third-party payment for you …

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