French Government Targets Crypto Holders Who Fail to Declare Holdings
A recent report suggests that only a small percentage of French crypto holders have declared their coins to the government, leading to potential action being taken. The Ministry of Public Action and Accounts, along with tax bodies in France, are preparing to address this issue. It has been reported that just 150,000 French residents accurately declared their cryptoassets at the end of the previous financial year.
According to estimates from the European Central Bank (ECB), around 5 million French individuals hold cryptoassets, including Bitcoin (BTC). Tax officials suspect that many taxpayers are under-declaring their assets, leading the ministry to develop new legislation in collaboration with the Economy Ministry. This legislation will include various measures designed to ensure compliance with the government’s regulations.
Failing to declare crypto holdings on tax returns in France can result in fines, which can be as high as 40% of the total value of the coins. For professional crypto traders who fail to declare their holdings, this fine can be doubled to 80%. The proposed legislation is expected to be discussed by lawmakers and senators in the coming weeks and, if approved, could be implemented before the end of fall 2024.
The Ministry of Public Accounts is also seeking to empower tax authorities with new abilities to monitor citizens’ overseas assets and holdings. This will help crack down on French crypto holders who attempt to conceal their tokens in wallets and crypto exchanges based overseas. A recent report revealed that 15% of individuals aged 18-24 in France have purchased crypto, while 9% of French citizens have bought crypto at some point in their lives.