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In France, a parliamentary report has criticized the government’s efforts to combat tax evasion as “insufficient.” The report recommends strengthening the fight against tax evasion and allocating more resources to the cause. Despite an anti-fraud plan presented by the government, the report claims that the results of tax audits remain mediocre and that 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, noting that it would bring in considerable revenue for ecological transition and social emergency initiatives. The government recently launched a Fraud Evaluation Council to quantify tax fraud in France.

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 and tightening of measures surrounding transfer pricing.

The report expresses concern about a drop in staff within the General Directorate of Public Finances in France and calls for the strengthening of customs. It highlights the need for new technologies such as data mining not to replace human expertise and proposes the establishment of a common database for different anti-fraud services.

The report also criticizes the use of data mining software provided by private companies, raising concerns about sovereignty and security. It notes that none of the recommendations from the previous report on tax evasion have been implemented and highlights the need for a strategy to detect tax fraud among individuals.

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