Taxes are up to cryptocurrency holders

Are French cryptocurrency holders reporting their investments correctly to the tax authorities or are they skirting the rules? It seems the government is clearly asking this question and plans to tighten controls as part of the anti-fraud bill to be introduced next autumn.

The account is not there

Quoted by user EchoesThomas Cazenave, Minister for Public Accounts, does not hide his doubts:

The ECB estimates that 5 million French people use cryptoassets and there are only 150,000 declarations addressed to the Directorate General of Public Finance. When we compare these two characters, there is clearly a part that we are missing.

He adds: “I hope that we will be able to align the powers of the tax administration with what happens with foreign accounts in terms of periods of enforcement, control or sanctions”.

We remind you that French taxpayers are required to declare profits generated by crypto-asset transactions. These are taxable if they exceed 305 euros. If not declared, the bill can quickly rise with a statutory 40% tax increase.

Except that, as our colleagues from the economic daily rightly point out, the tax administration has only three years to trace crypto-asset operations (compared to ten years for foreign bank accounts).

International regulations will change the situation

So the bill could be a game-changer, but other international projects will also change things. The European directive, which will enter into force in 2026, will force digital asset service providers to declare their clients’ operations in the country of establishment. As for the OECD, it will start exchanging automated information between countries by 2027.

It will be understood that the noose is being tightened on all those who would be tempted to avoid paying taxes or who would suffer from administrative phobia. To properly manage your procedures, we have compiled a guide that explains very clearly how to declare your cryptocurrencies in 2024.

What do you think about this anti-fraud effort announced by the government? Tell us in the comments.

What you need to remember:

  • The government has noticed that many holders of cryptoassets appear to be circumventing this declaration
  • The Anti-Fraud Bill, which will be studied in the autumn, will contain provisions on this subject
  • Several international systems will complement the tax arsenal

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