The French Government has announced a number of tax simplification measures. The aim is to simplify administrative procedures in respect of taxation for both companies and individuals in France, and to reduce state spending on tax breaks. The proposals are designed to reduce the public deficit by around EUR3bn (USD3.9bn) next year.
The Government also aims to simplify administrative procedures and reduce compliance costs by simplifying the research tax credit (CIR), and by ensuring that more companies subject to corporation tax (IS) in France are required to declare and pay their tax bills electronically.
The tax authorities will aim to base their dealings with taxpayers on a relationship of trust. Consequently, rather than tax audits being carried out post-declaration, the Tax Administration will carry out annual reviews, considering tax options and obligations with businesses prior to the submission of a corporate tax declaration. This will enhance certainty for firms.
Measures are also to be taken to facilitate customs procedures, by offering a secure service for taxpayers to declare and pay various taxes and duties online, including levies due on alcohol, on alcoholic drinks, on sugary beverages flour and cereal.
A bill providing for some of the measures is due to be presented in September 2013. Further cost cutting initiatives are currently being considered.
