France targets multinational corporations for tax avoidance

The French government will target the wealthy and multinational corporations, and the largest corporations will be audited every two years.

On Tuesday, May 9, France's minister of public action and accounts proposed to tighten tax regulations for the wealthy and multinational corporations as part of an anti-fraud tax package.

Gabriel Attal told Radio France on Tuesday, “My plan is to pile pressure on the ultra-rich and the multinationals but also to alleviate the pressure on the middle classes and small business owners to give them a breather.”

In the interview, Attal outlined a strategy for combating tax evasion, which includes a 25% rise in tax audits on large estates by the conclusion of President Emmanuel Macron's five-year term in 2027.

“There is an overwhelming majority of French people who work, who pay taxes and who are the victim of this fraud, and our priority is to make the ultra-rich and the multinationals who defraud pay what they owe,” Attal added.

Attal also stated that tax audits for the top 100 companies will be conducted every two years, and that electronic invoices for business transactions would be made necessary.

The government will also combat overseas fraud by establishing a new tax intelligence service comprised of "elite agents" completely dedicated to combating it.

In another interview with the French newspaper Le Monde, Attal cautioned tax evaders that penalties would be increased "for the most serious faults," such as concealing of assets overseas.

The largest union representing France's tax authorities, Solidaires Finances Publiques, claims that tax fraud cost the government between €80 billion ($87.9 billion) and €100 billion in 2017.

By fLEXI tEAM