What should you do when you receive a hearing request from the tax authorities?

A New Hearing Power Related to International Taxation

Since January 1, 2017, Article L10-0 AB of the French Tax Procedures Code (Livre des procédures fiscales) authorizes Category A or B officers of the tax administration to interview certain individuals in order to establish the location of activities in France or to prove tax residency.

Through this mechanism, the tax authorities may gather preliminary evidence before initiating a tax audit, use it during an ongoing audit, or support a request for authorization to conduct a tax search (perquisition fiscale).

The individuals who may be interviewed include any persons likely to provide information useful to the administration in fulfilling its mission. This may include business contacts (clients, suppliers, partners, employees, etc.) of the taxpayer concerned, as well as individuals within their private sphere.

It should be noted that the taxpayer under investigation is expressly excluded from the scope of this hearing power.
The person summoned must be informed at least eight days prior to the scheduled date and has the right to refuse to attend. In principle, the hearing notice also specifies the right to be assisted by a person of one’s choice.

Our firm is available to assist you and answer any questions you may have, including:

• your rights during the hearing,
• the implications of refusing to attend,
• the tax consequences of signing a hearing report (procès-verbal d’audition),
• and the extent of the administration’s power to request documents.