A million people in France received tax refunds after issues with new property declaration
The problem caused a €1.3 billion overpayment in property taxes with for the tax year 2023
Over a million taxpayers were incorrectly charged taxe d’habitation or taxe sur les logements vacants, public auditors said
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More than a million taxpayers received refunds of over €1.3 billion after IT issues meant they paid too much tax linked to the start of an online property declaration scheme.
French public auditor the Cour des Comptes stated in a new report the government had to pay the money due to errors with the Gérer mes biens immobiliers (GMBI) platform in 2023.
The state auditors said the problems were largely due to property owners’ confusion over how to complete the form, and “all efforts must be made” to avoid such a ‘loss’ to the state occurring again “in a financial context that is already difficult”.
In the new report, the auditors noted that, in accordance with French national tax law, the refunds came from national state coffers; the local councils concerned kept the money that was collected.
“More than a million taxpayers were wrongly charged taxe d’habitation or tax on vacant homes,” the report said.
The GMBI service was launched in 2021. It enables property owners to declare the way their property is used, for example, as owner-occupiers, or let out.
After the gradual abolition of the taxe d'habitation on main residences (which happened between 2018 and 2023), it is also intended to provide the state with “reliable, up-to-date data to establish the remaining taxes owed: the taxe d'habitation on second homes, the taxe d'habitation on vacant dwellings and the taxe sur les logements vacants” said the auditors.
Read also: Who still has to pay taxe d’habitation property tax in France?
Read more: French second home tax - who pays it?
Read also: French second home: in what cases can you be exempt from taxe d’habitation?
‘Very serious financial consequences’
However, problems with the system in the tax year of 2023 had “very serious financial consequences for the state”, the auditors said.
Read more: Is taxe d’habitation required for flats let in my French farmhouse?
The auditors also highlighted issues with the initial rollout of the GMBI system.
“The deployment…took place under particularly difficult conditions”, it said, adding that the “direct cost [of the platform] was €37.2 million, three times higher than the total amount initially forecast”.
La Cour des Comptes also issued a warning to the government, saying: “In a very difficult financial context for public finances, every effort must be made to ensure that a loss of this magnitude does not recur with regard to 2024.”
What if I think I have paid too much tax?
If you believe there has been an error, you can lodge a complaint via the tax website.
The first option is to lodge a claim online via the Ma messagerie sécurisée (My secure messaging system) section of your personal space on the official tax website, then by clicking on Je signale une erreur sur le calcul de mon impôt (I am reporting an error in the calculation of my tax).
The request can also be made in a letter, by telephone or by visiting the tax office in person.
However, the tax website warns that: “Complaints do not exempt you from paying your tax.”
You can ask for a delay in payment in order to contest your claim but must still pay if required. You may only receive a refund once the claim has been accepted.
