This article is written in partnership with Waltio (find out more)
The risks of an error or omission in your declaration
In the event of default or omission of declaration, whether concerning your accounts abroad via form 3916-bis or your taxable transactions, you are exposed to administrative and tax consequences, in particular penalties.
Thus, in the event of forgetting to declare a digital asset account, the law (Art. 1736 X CGI) foresees a fine of €750 per account undeclared as well as €125 per omission or inaccuracy not having been rectified at the initiative of the taxpayer.
If the value of your account has exceeded €50,000 during the year, then the fine may increase up to €1,500 for his non-declaration and €250 per omission or inaccuracy. An increase in the amounts you owe to the tax authorities may also take place (tax adjustment):
- 10% in the event of an error in the calculation of your capital gains or losses;
- 40% in case of bad faith or partial declaration;
- 80% in the event of repeated fraud attempts.
💡 Know that you have always have the possibility of rectifying your declaration within the following 30 days to avoid this tax adjustment.
In the event of tax evasion recognized by the administration, criminal penalties may apply. The law provides for a fine of up to 3 million euros as well as a prison sentence of up to 7 years for aggravated fraud (Art. 1741 CGI).
You forgot to declare certain transactions or made a mistake? Do not panic, there is a solution.
👉 To avoid mistakes like this, check out our complete Waltio tax wizard tutorial
The solution with the “right to error”
Good to know, the ESSOC law of 2018 implemented the “ room for error in tax matters. The right to error designates the possibility of regularizing one’s situation without paying a penalty, when an individual has made an error or an omission in a tax return. Thus, the situation can be regularized at any time.
However, it should be specified late payment interest may be addedbut no surcharges or fines. Of course, the right to make mistakes does not apply to mistakes made deliberately.
How to regularize your situation?
If you notice an error or omission in your declaration, you can report it to the tax authorities by making a ” amended tax return » by connecting to your private space and using the online correction service open between August and mid-December of the year of the online declaration to be corrected.
To prevent such a situation from occurring, the use of a tax return assistance tool such as Waltio allows you to identify your taxable transactions and automatically calculate your taxable amount. Waltio provides you with the necessary tax documents in the event of a tax audit and allowing you to declare your cryptocurrencies in accordance with the law in force.
👉 Find our 2022 guide to tax reporting in cryptocurrencies
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