J'ai fait appel à Maître Uzan dans le cadre d'une procédure fiscale longue et techniquement complexe. Analyse rigoureuse du dossier, réponses précises dans des délais parfois très courts, et surtout une vraie capacité à maintenir un dialogue constructif avec l'administration plutôt qu'à durcir inutilement les positions.
Il a pris le temps de m'expliquer chaque étape et les options possibles, sans jargon et sans promesses excessives. Le dossier s'est conclu par une issue négociée.
Un accompagnement sérieux, du premier échange jusqu'au suivi complet de l'exécution. Je recommande sans réserve.
Tax Audit: Defending Yourself
By Marc Uzan, French tax lawyer in Paris
Tax Audit: Defending Yourself with a Tax Lawyer
Tax lawyer at the Paris Bar since 2008 – exclusive tax law practice, including tax audits of individuals
Summary
- Audit notice = start of the tax audit (ESFP – in-depth examination of personal tax situation); mandatory provision of the Charter of the Audited Taxpayer (Charte du contribuable vérifié).
- Key deadlines: 30 days to respond to the proposed tax reassessment, extendable by 30 days (French Tax Procedure Code (LPF), article L.57).
- Penalties incurred: interest of 0.20% per month + surcharges of 10%, 40% or 80% depending on the seriousness (French General Tax Code (CGI), article 1729).
- Tax lawyer: oversees the procedure, structures the response, negotiates, and initiates administrative and judicial remedies.
What are the first stages of a personal tax audit and what are your rights?
- The audit notice formally opens the procedure: Sent by registered letter, this notice specifies the tax and the years being audited. It must be accompanied by the Charter of the Audited Taxpayer (mandatory under article L.47 of the LPF), which guarantees your rights.
- Postponement and assistance: it is possible to request a postponement of the auditor’s first visit (the request is assessed by the tax authorities) and to be assisted by an adviser of one’s choice, for example a tax lawyer, throughout the procedure.
- You are entitled to an adversarial exchange: A tax audit is not a one-way street. You can consult your file, request documents, ask questions and make written or oral observations at each stage of the audit.
How do you respond within 30 days to a proposed tax reassessment (NPR)?
- Analysis of each objection, ideally with your lawyer: the tax authorities in principle justify each adjustment with facts and a legal basis. It is useful to take the time to read each point, check the amounts and understand the legal grounds relied on.
- Evidence: it may be useful to prepare a complete file (bank documents, letters, contracts, summary tables) to demonstrate the accuracy of your returns or to challenge the tax authorities’ interpretation.
- Clear and reasoned observations: a response generally includes a statement of the facts, a legal analysis (statutes, case law or administrative guidance) and a conclusion, with the supporting documents attached. The clarity of the response can be decisive.
- Additional 30-day period, where appropriate: this option is provided for by article L.57 of the LPF. It in principle makes it possible to extend the response period to 60 days without justification. A written request received by the tax authorities before the deadline is in principle sufficient.
- Sending the response: sending it by registered mail with acknowledgement of receipt makes it possible to prove that the legal deadline was met. It is useful to keep a copy of the file and of all the documents sent.
Which surcharges, late-payment interest and reassessment periods do you face in a tax audit?
| Failure | Surcharge (arts. 1728 and 1729 CGI) | Interest (art. 1727 CGI) | Reassessment period | Possible mitigation |
|---|---|---|---|---|
| Simple late filing | 10% | 0.20%/month | 3 years | Prompt payment, request for discretionary remission (LPF L.247) |
| Bad faith | 40% | 0.20%/month | 3 years | Supporting documents, unintentional error |
| Fraud or abuse of law | 80% | 0.20%/month | 3 years (5 years if a criminal tax fraud complaint is filed; 10 years for an undisclosed activity or undeclared foreign accounts) | Challenge, settlement or lack of intent |
What hierarchical and judicial remedies are available to challenge a tax reassessment?
- A final exchange with the inspector: before any appeal, and after analysing your situation with your lawyer, it is possible to request a meeting to obtain explanations and try to change the auditor's position. This dialogue sometimes makes it possible to avoid a notice of collection.
- An appeal to the legal division or the hierarchical superior: it is possible to request a review at a higher level, particularly if you consider that the procedure contains errors or excessive interpretations.
- A formal claim within the time limits: after the tax has been put into collection, a claim may in principle be filed until 31 December of the second year following the year of collection (article R*196-1 of the LPF), the time limits possibly varying depending on the situation. Without a claim within the time limits, the tax in principle becomes final.
- The tax conciliator or the administrative court: depending on the case, after the tax authorities have responded to the claim, an amicable route (departmental tax conciliator) or a litigation route (administrative court) may be considered; referral to the conciliator does not, in principle, interrupt the time limit for bringing the matter before the court.
- A possible settlement on penalties: Article L.247 of the LPF makes it possible, under certain conditions, to negotiate a discretionary remission or a partial settlement (transaction) on interest and surcharges, depending on your personal situation.
What remedies are available during the audit, before collection?
The hierarchical appeal
The auditor’s line manager may be contacted in order to obtain a meeting. This exchange makes it possible to present the taxpayer’s arguments and, depending on the case, to seek an agreement.
This step may also lengthen the procedure.
Referral to the departmental contact person (interlocuteur départemental)
If the disagreement persists, the departmental or regional contact person (interlocuteur départemental) may then be approached: this is a further opportunity to present the taxpayer’s arguments or to seek an agreement.
This step may likewise lengthen the procedure.
Referral to the Direct Taxes and Turnover Taxes Commission (commission des impôts directs et des taxes sur le chiffre d’affaires)
In certain cases, in particular for questions of fact, this commission may be consulted. It is chaired by an administrative judge and composed of representatives of taxpayers and of the tax authorities; it issues an advisory opinion.
Referral to the Abuse of Law Committee (comité de l’abus de droit)
Where the tax authorities invoke abuse of law, this committee may in principle be consulted; it gives an opinion on whether the tax authorities’ position is well founded.
What I see in my cases
When facing an audit, the advice I give almost all my clients is not to be more royalist than the king. Under stress, many tend to say too much and to anticipate the tax authorities’ questions in order to show their good faith. In my experience, it is generally more effective to move forward step by step, in a kind of controlled “ping-pong”: answering exactly and precisely what is asked, without providing more information or documents than necessary, which obviously does not mean hiding anything.
The first things I look at are the limitation period and the regularity of the procedure: I have fairly regularly had reassessments annulled on one or other of these grounds. Then come the merits and, almost every time, an attempt at negotiation. For replies, I like to get ahead rather than wait until the last minute.
Finally, worry is normal: most of my clients are worried when they contact me. My role is to remain objective about their situation and, if it is serious, to tell them so clearly.
Why be assisted by a tax lawyer as soon as you receive the audit notice?
- They secure the procedure from the outset: The lawyer makes sure that the Taxpayer's Charter has been provided, that deadlines are respected and that the tax authorities have not violated your fundamental rights (in particular the obligation to state reasons).
- They draft reasoned observations: drawing on their knowledge of the General Tax Code and the Book of Tax Procedures, they build a structured line of argument that meets procedural requirements.
- They deal with the tax authorities on your behalf: depending on the case, they may discuss how the facts and the surcharges are characterised, or seek a settlement.
- They represent you in appeals and before the court: in the event of litigation, the tax lawyer prepares the claim, drafts the pleadings and argues the case before the administrative court.
FAQ
Why are the tax authorities auditing me when I have always reported my income?
A tax audit does not necessarily mean that you are suspected of fraud. The tax authorities trigger audits on the basis of algorithms, cross-checking of files (banks, platforms, SCIs), reports from third parties or simple inconsistencies. A sudden change in income, an incomplete return or a one-off anomaly is sometimes enough to justify an audit.
Even if you are acting in good faith, it is generally useful to respond precisely and to substantiate each point, ideally with the help of your lawyer. The audit is a verification procedure, not necessarily an accusatory one.
Procedure plays a very important role: it gives you rights and safeguards and, if the tax authorities commit an irregularity, it may, depending on the case, make it possible to have all or part of the reassessments cancelled.
How do you request an additional 30 days to respond to a proposed tax reassessment?
In principle, a written, dated and signed request is to be sent to the auditing department, which must receive it before the initial 30-day period expires. This right is provided for in article L.57 of the LPF. It is in principle not subject to conditions or justification, but must be clearly stated.
When the request is received in time, this extension is in principle granted as of right. It allows you to prepare a complete response, consult a lawyer and gather your supporting documents. Sending the request by registered mail with acknowledgment of receipt can be useful to keep proof of it in the event of a dispute.
Note: this extension applies to the adversarial reassessment procedure, not to ex officio assessment.
Can an 80% surcharge for tax fraud be challenged?
The 80% surcharge in principle concerns the most serious cases: deliberate concealment, false accounting, manifest abuse of law. It may be important to react quickly, with the help of a lawyer. Depending on the case, this classification may be challenged, for example by demonstrating your good faith, a simple oversight or an error of interpretation.
In some cases, a settlement may also make it possible to reduce the penalty. Before making any decision, it is advisable to consult a tax lawyer, who can in particular look for possible procedural defects and assess the remedies available within the time limits.
Glossary
- NPR: Notification de Proposition de Rectification (proposed tax reassessment notice)
- 40% surcharge: penalty for bad faith
- Reassessment period: the period during which the tax authorities can make adjustments
- Charter of the Audited Taxpayer (Charte du contribuable vérifié): document setting out your rights in the event of an audit
Checklist: 5 points on receipt of the notice
- Notice read and presence of the Charter checked
- Situation analysed with a lawyer
- Years and taxes under audit identified
- Relevant supporting documents gathered
- Response prepared with your lawyer within the time limit (30 days, + 30 on request)
Further reading
- LPF, article L.47: legal framework for the audit notice
- LPF, article L.57: deadlines and taxpayer rights
- BOFiP BOI-CF-IOR-10: adversarial procedure in the event of a reassessment
- CGI, article 1729: scale of surcharges
Further reading
- Undergoing a Tax Audit in France: What Happens and How to Respond
- What Are the Forms of Tax Audit?
- I Have Received a Tax Reassessment Proposal: What Should I Do?
- The Right of Disclosure (Droit de Communication): Tax Office Powers
- Request for Clarification or Justification from the French Tax Authorities: Deadlines, Reply and Consequences
- Time Limits for Reassessment: For How Long Can I Be Reassessed?
- Tax Audit: 12 Procedural Defects That May Lead to Reassessments Being Annulled
- Tax Audit: Myths and Realities
