These measures, set
to be included in the Finance Bill for 2024, are poised to strengthen our
financial ecosystem and ensure fairness in taxation. Here's a rundown of the
most significant highlights:
Lowering the Transfer
Pricing Documentation Threshold:
To enhance
transparency, the government plans to reduce the annual turnover threshold for
multinational enterprises required to provide transfer pricing documentation.
Currently set at EUR 400 million, this adjustment will broaden the scope of
multinational entities subject to scrutiny.
Extending
the Statute of Limitations:
The
cross-border transfer of intangibles will be subject to an extended statute of
limitations exceeding the current three-year timeframe. This measure aims to
address potential tax evasion involving intangible assets and reinforce the
effectiveness of our tax enforcement efforts.
Introducing
"Tax Indignity" Penalty:
In an
effort to deter tax fraud, taxpayers found guilty will face a specific penalty
known as "tax indignity." This penalty will deny them any tax
credits, serving as a strong disincentive for engaging in fraudulent activities
and reinforcing the importance of compliance.
Additionally,
the government has set ambitious goals to combat tax evasion in the coming
years:
Increasing
Tax Audits:
By 2027,
the number of tax audits on private individuals, especially high-net-worth
individuals, and the largest multinational enterprises will rise by 25%. This
proactive approach will ensure a comprehensive examination of tax affairs,
promoting fairness and accountability.
Establishing
a Special Audit Team:
To tackle
the most serious cases of international tax fraud, the government will create a
dedicated audit team. This team will focus on complex instances, such as the
utilization of foreign shell entities or trusts, to ensure robust action
against illicit financial practices.
Advocating
for Tax Transparency:
France aims
to initiate international action to promote tax transparency on a global scale.
The ultimate objective is for all tax authorities to have a comprehensive
overview of taxpayers' assets worldwide. This step will foster cooperation
among nations and contribute to curbing tax evasion effectively.
The
government's commitment to combating fraud in public finances is unwavering. In
the near future, they will unveil a comprehensive plan to counter all types of
fraud, providing further details on these measures. We will keep you updated on
any new developments as they unfold.
Stay tuned
for more exciting news in transfer pricing and international taxation.
