Tax Reassessment Procedure in France
1. Tax Reassessment Notice (Proposition de rectification)
After a tax audit, the French tax authorities may send a tax reassessment notice to a taxpayer (individual or business) to notify them of a proposed reassessment. This official document marks the beginning of the tax correction process.
2. Key Elements of the Tax Reassessment Notice
- Notification format: Sent via registered mail; the envelope and receipt date should be preserved.
- Financial consequences: Detailed at the end of the notice, typically in a table, including:
- Principal tax reassessment (« droits »)
- Late interest (« intérêts de retard« )
- Penalties and surcharges (e.g., for omissions, bad faith, or fraud) (« majorations »)
- May lead to criminal consequences in cases of serious fraud.
3. Mandatory Information in the Notice
The notice must:
- Justify the reassessments (legal/factual basis, tax years, amounts)
- Indicate the response deadline (30 days)
- Inform the taxpayer of:
- The right to legal representation
- Available hierarchical appeals
- The name and signature of the competent tax officer
- A lack of justification may invalidate the notice.
4. Response Timeline and Procedure
- 30-day deadline to respond (extendable by another 30 days upon request before the first deadline ends).
- Non-response = deemed acceptance of the reassessment.
- Taxpayers should send their response by post and ideally confirm by email.
5. Responding to the Notice
- Taxpayers can accept or contest the notice.
- A tax lawyer is strongly recommended to help:
- Draft a legally grounded response
- Identify procedural flaws (potentially useful later)
- A strong argument may lead the administration to revise or withdraw its position.
6. Hierarchical Appeals
If disagreement persists after the taxpayer’s response:
- First-level appeal: to the immediate superior of the auditor (30 days to file).
- Second-level appeal: to the departmental interlocutor (also 30 days to file after first-level rejection).
7. Departmental Commission
In specific cases (depending on tax type and procedure), the taxpayer may appeal to a departmental commission for a non-binding opinion, which the tax administration usually follows.
8. Recovery Notice (Avis de mise en recouvrement)
If reassessments are maintained, the taxpayer receives a recovery notice:
- This formalizes the amounts due
- Taxpayer must pay the reassessed taxes, penalties, and interest
9. Legal Action and Contentious Phase
- If the taxpayer disputes the final tax bill:
- They may file a formal claim with the tax authorities
- In case of no response or rejection after 6 months, they have 2 months to appeal to the Administrative Court
Why do you need the assistance of a tax lawyer
The best advice for any taxpayer who receives a tax audit notice is to consult a tax lawyer immediately—whether the notice relates to:
- An audit of accounts
- A personal tax audit
- A desk audit
Though tax returns are presumed to be accurate and sincere, they may contain errors, such as:
- Underreporting
- Inaccuracies
- Omissions
- Voluntary concealment
The tax authority’s role is to collect documentation, ask questions, and ensure compliance.
In return, the administration must follow due process and respect taxpayer rights. Hierarchical appeal mechanisms are available if issues arise during the audit.
Having a tax lawyer involved from the beginning helps ensure that:
- The procedure is legally compliant
- The taxpayer follows the best strategy for their specific situation
Final Note
The information provided above is a general overview of the procedures for challenging a tax reassessment in France. Numerous specific rules apply depending on the type of tax involved or the particular audit procedure used.
Legal Support from VV Avocat
VV Avocat supports and represents clients in all dealings with the French tax authorities, whether for:
- Securing tax approvals
- Undergoing tax audits
- Handling tax litigation before administrative or judicial courts
Have you received a tax reassessment notice (« proposition de rectification« ) or a request for information (« demande de renseignements« )?
Do not wait in contacting legal counsel. The tax authority is preparing to initiate a control procedure, either on-site or from its offices.
The firm also assists clients in cases involving criminal tax issues, such as tax fraud or tax scams.
