The French Parliament approved the Finance Bill for 2015 and the Second Amended Finance Bill for 2014 On 18 December 2014. The Finance Bill for 2015 provides that for tax audits initiated from 1 January 2015 penalties for inadequate documentation are the higher of EUR 10,000 per entity per period under audit; 0.5% of the total volume of the transactions for which the entity failed to provide adequate documentation; or 5% of the reassessed profits.
These penalties apply to the taxpayers who must prepare full transfer pricing documentation. For failure to submit the abridged documentation there is a fixed penalty of EUR 150.
