Youtubers, tiktokers, instagramers; and other «anonymous persons» generating hidden income will have to deal with a new tax provision in the Finance Bill. Article 216 of the French General Tax Code (Code général des impôts), relating to the examination of taxpayers’ entire tax situation, has been revised in the Finance Bill.
In its new version, the provision no longer refers solely to «taxpayers», but is broadened to include individuals in general. The change is significant, since taxpayers are already identified by the tax authorities, whereas the notion of «natural persons» is much broader, referring to anyone who generates income without ever declaring it or even beeping on the tax authorities’ radar. The aim of extending the scope of this system is to check the consistency between these people’s income, their liquid asset, and their lifestyle. The Directorate General of Taxes (DGI) wants to put an end to situations where people declare, for example, 100,000 Dirhams (USD 10,000) as total income, when in fact they earn much more. With this provision, the tax authorities also want to capture income that is not subject to any taxation. This explains the restoration of the cash amnesty.
The investigators of the tax authorities can assess the overall income of certain taxpayers on the basis of their bank account balance, or that of any other person with whom they may have a link if they are the actual beneficiaries of these liquid assets, as well as their expenses. The investigators can also scrutinize the taxpayers’ expenses under article 29(1) of the CGI (General Tax Code), which are obviously not yet time-barred. It should be noted, however, that the tax authorities may not examine the same period more than once. It should be noted, however, that the tax authorities cannot examine the same period more than once.
Individuals who prefer to remain anonymous in order to continue earning hidden income will be automatically assigned a tax identifier by the DGI: a procedure already instituted by the 2023 Finance Law and which will enable the administration to officially assess their annual income, by taking into account the information it holds on them. The place of taxation will be that shown on their national identity card or residence permit for foreign nationals.
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