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Unconstitutionality of the proportional fine for non-reporting of French tax resident foreign bank accounts


Published on 31th August 2016
AN OPPORTUNITY TO REGULARIZE WITH A FINE CAPPED AT €1,500

Conseil constitutionnel - 22nd July 2016 (2016-554)


Emilie Collomb
Partner
Specialized in tax law


The proportional fine for unreported foreign accounts by a French tax resident of 5% of the bank balance, which may be bounded below to 1.5% or 3% in the spontaneous regulation system set up by the circular "Cazeneuve", was declared unconstitutional (obviously a disproportionate penalty to the simple omission).

And until the adoption of a new text which should not take effect before 2017, only a fixed fine of €1,500 (increased to €10,000 if the undeclared account is held in an ETNC) is de facto applicable to the revealed foreign accounts.