In France, a parliamentary report has criticized the government’s efforts to combat tax evasion as “insufficient.” Despite an anti-fraud plan presented by the government, the report claims that tax audits results remain mediocre and staffing and resources are insufficient. The report estimates tax fraud in France to be between 80 to 120 billion euros and calls for massive investments in the fight against fraud.
The report also emphasizes the international dimension of the fight against tax fraud and calls on France to be at the forefront of tax diplomacy. It recommends increasing the minimum tax on corporate profits and calls for greater firmness towards tax havens. Furthermore, it proposes tightening of measures surrounding transfer pricing.
The report highlights a drop in staff within the General Directorate of Public Finances in France and calls for strengthening customs. The report also recommends using new technologies such as data mining not to replace human expertise but instead proposes establishing a common database for different anti-fraud services.
In addition, the report criticizes private companies that provide data mining software, raising concerns about sovereignty and security. It notes that none of the recommendations from previous reports on tax evasion have been implemented, highlighting the need for a strategy to detect tax fraud among individuals.