Report an acquaintance who is cheating on their taxes, and receive money in return. This is the controversial system put in place by the State since 2017. And it would be lucrative for some, if a recent report is to be believed…
Denouncing tax evaders: a business that can bring big returns for French individuals
Report an acquaintance who is cheating on their taxes, and receive money in return. This is the controversial system put in place by the State since 2017. And it would be lucrative for some, if a recent report is to be believed…
Report tax fraud to collect rewards
While the government has announced that it wants to hunt down tax evaders, particularly in the cryptocurrency sector, a little-known technique is coming back to the forefront: that of denunciation. Since 2017, any individual can report a person they knowby informing the tax services of its shortcomings in terms of tax declaration.
According to the Journal du Net, which recently shed light on this controversial practice, it is a business that sometimes pays big dividends. Initially, whistleblowers were solicited only for international tax fraud. But now, all taxpayers can be denounced.
📄 Don’t miss our guide – 2024 Guide to Cryptocurrency Tax Declaration
Those who report them have been modestly baptized “tax advisors” by the State, and they sometimes receive substantial rewards: up to 15% of the amount reported. There are still few of them in France, but their number is increasing: from 27 in 2017, they increased to 102 in 2021.
Ledger: the best solution to protect your cryptocurrencies
Denunciations which often come from relatives
According to the Ministry of Finance, denunciations often come from the immediate entourage of the person concerned :
“[Par exemple] spouses in conflict with their partner or brothers and sisters who do not get along. Or accountants who decide to no longer support their client’s fraudulent practices. »
👉 Read on the same subject – Hidden cryptocurrencies: the government wants to hunt down tax evaders
Furthermore, reviewers have the advantage of being relatively anonymous. Only a handful of tax service employees know their names :
“A decree of April 21, 2017 provides that the National Directorate of Tax Investigations (DNEF) keeps, confidentially, the documents making it possible to establish the identity of the advisor, the date, the amount and the terms of payment of the tax. compensation.»
Cryptoast Research: Don’t waste this bull run, surround yourself with experts
Up to 3 million euros fine for tax evaders
Only condition, and size: the reported fraud must correspond to a loss greater than 100,000 euros for the French tax services. Of course, “advisers” are invited to provide precise and reliable information. For the state, it is a very profitable market. Since the beginning of this system, the tax authorities have in fact spent 1.83 million euros in rewards out of the 110 million euros in taxes that have been recovered.
🌐 To go further – Tax fraud: Switzerland is considering adopting an automatic reporting system for cryptocurrencies
For tax evaders, the bill is steep: up to 40% more due for deliberate forgetting, and 80% for undeclared activity. In addition, criminal sanctions also apply: up to 500,000 euros fine and 5 years in prison for simple fraud, and 3 million euros fine and 7 years in prison for aggravated fraud.
Source: Journal du Net
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no harm to you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to cryptoassets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency industry, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
3012 items
