Companies and individuals using tax efficient structures may feel concerned following the “Paradise papers” revelations.
It is however important to note that implementing tax efficient structures is not necessary illegal.
Thus, in order to secure the tax treatment of tax efficient structures used, Bird & Bird highly recommend to its clients to assess their potential risk exposure, and therefore:
- review the nature of tax structures implemented and their compliancy with the French tax legislation;
- regularize risk situations before the French tax authorities where appropriate.
As a reminder, the French tax authorities have a tax department dedicated to the spontaneous regularizations of foreign assets (the so-called “Service de Traitement des Déclarations Rectificatives, “STDR”) which can benefit from a reduction of penalties, surcharges and fines for spontaneous regulations. The French government announced the closing of this department on December 31, 2017. Therefore, the concerned taxpayers should file their complete regularization file before the end of this year.