A report claims that only a small fraction of French crypto holders have declared their coins to the state, prompting the Ministry of Public Action and Accounts and the nation’s tax bodies to take action. The ministry believes that many taxpayers are under-declaring their assets and is preparing new legislation to force crypto holders to comply. Failing to declare crypto holdings on tax returns in France can result in fines of up to 40% of the coins’ total worth, or 80% for professional traders. The new proposals could be discussed in the coming weeks and may be implemented before the end of FY2024.
According to European Central Bank estimates, around 5 million French people hold cryptoassets, including Bitcoin. However, the government suspects that many are not disclosing these assets on their tax returns. The planned legislation will include a range of measures to crack down on under-declaration and ensure compliance with tax laws. These measures are expected to come as a “rude awakening” for French cryptocurrency enthusiasts and could include fines for those who fail to declare their holdings accurately.
In addition to fines, the Ministry of Public Accounts is also looking to give the tax body new powers over citizens’ overseas assets and holdings. This would enable tax officials to track down French crypto holders who attempt to hide their assets on overseas-based wallets and exchange platforms. The Ministry aims to strengthen its enforcement capabilities and ensure that all crypto holders are complying with tax regulations. The proposed legislation could be discussed by lawmakers and senators in the coming weeks and may be implemented before the end of the fiscal year.
The new rules and regulations are part of a broader effort by the French government to crack down on tax evasion and ensure that all citizens are paying their fair share. The measures are designed to target those who are not accurately declaring their crypto holdings and could result in significant penalties for those found to be in violation. With the potential for fines of up to 80% of the total value of the coins, French crypto holders are being urged to ensure that they are complying with the law and accurately reporting their assets.
Despite the potential for stiff penalties, the Ministry of Public Accounts believes that the new legislation is necessary to ensure that all taxpayers are fulfilling their obligations. With millions of French people holding cryptoassets, the government is keen to ensure that these assets are being accurately reported and taxed appropriately. The proposed measures aim to close any loopholes that may be exploited by those seeking to evade taxes and to ensure that all citizens are contributing their fair share to the country’s coffers.
Overall, the French government is taking a proactive approach to regulating the cryptocurrency market and cracking down on tax evasion. By introducing new legislation and giving tax officials increased powers, they aim to ensure that all crypto holders are complying with tax laws and accurately declaring their assets. The proposed measures could have a significant impact on French cryptocurrency enthusiasts, who may face hefty fines if they fail to accurately report their holdings. Ultimately, the government’s goal is to create a more transparent and fair tax system for all citizens, including those involved in the crypto industry.
