When reviewing your tax return, did you notice that the box relating to the holding of foreign accounts (box 8UU) or the holding of foreign life insurance policies (box 8TT) was already ticked?

Be aware that the tax authorities automatically receive information from foreign banks.

This is the automatic exchange of information system (Common Reporting Standard, known as CRS).

More specifically, you noticed:

– that in Step 3 “Income and expenses” (Revenus et charges), when clicking on “ANCILLARY returns” (Déclarations ANNEXES), the following line was pre-ticked:

Return by a resident of an account opened outside France        No. 3916

– and that box 8UU of return 2042 was also pre-ticked

In most cases, this is due to the automatic transmission of banking information by your foreign bank or banks to the French tax authorities.

France has been part of the AEOI (Automatic Exchange of Information agreement on banking data) since 2017.

French banks transmit information to the foreign tax authorities of AEOI member countries.

Conversely, foreign banks in AEOI member countries transmit information to the French tax authorities.

For the first time, in 2020, for the return covering 2019 income, boxes 8UU and/or 8TT of return 2042, relating to the holding of foreign accounts or foreign life insurance policies, were pre-ticked by the French tax authorities where they had received information indicating that you hold foreign accounts.

Our firm has extensive experience in matters relating to foreign accounts.

For a clearer picture of the ins and outs of holding foreign accounts (reporting obligations, tax reassessments incurred, etc.), you can consult our many articles on the subject.