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We have seen recently a number of clients be caught out on the above ruling, including those who use an accountant.
If you are tax resident in France, you must declare each year your bank accounts, investment policies, and insurance contracts. This requirement does not apply to accounts used to make payments for online purchases or deposits relating to the sale of goods that total less than €10,000 a year for all accounts combined.
You are obliged to declare every account that was opened, closed, or used during the year. This includes ‘Assurance Vie’ policies that are not based in France, such as those in Luxembourg or Eire.
We have seen penalties imposed of €1500 per year per account and even taxation of presumed earnings at 40%! Of course, you should know that you need to declare your accounts, but this is often missed when you are busy preparing your tax returns.
If you haven’t declared in the past, it is best to contact the tax office directly, either through your online portal or at the office, and explain that you made an error. These penalties are arising due to information sharing between tax jurisdictions, so if in doubt, check with your tax office!
A useful link in English explains your obligations, and there is a specific CERFA form 3916 which you can download from the French Impôt website:
Declaring foreign bank accounts and life insurance policies held
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