Fined €5,000 over UK bank accounts
A reader from the Dordogne has contacted The Connexion over what he considers to be an “unjust” fine of €5,000 after he failed to declare the existence of two British bank accounts (at the same bank) for the 2014 and 2015 tax years.
Gareth Mulloy, 80, said he had formerly declared the current and deposit account, which received about €1,000/month in total, but omitted to do so for two years due to poor health.
On receiving the penalty he complained to his tax office - but to no avail - so he contacted the conciliateur fiscal who reduced a €6,000 fine to €5,000 as a remise gracieuse after he explained it was an honest mistake. He was told further reductions could only be given if he was unable to pay. Mr Mulloy said he could pay but that it was a significant proportion of his life’s savings.
He is contacting his tax office again, detailing his health problems and how, at the time of the declaration for 2014 income, a cataract operation affected his ability to read. He also says an accountant told him an annual declaration is not essential if accounts have been declared before.
He wants to warn other readers and check if there are other avenues he could pursue.
Firstly, we should point out that the tax office was entitled to make this fine as it represents €1,500 per account multiplied by two years, which is the usual non-declaration fine.
The requirement to declare accounts is separate from that of declaring foreign-sourced income. Declaration involves ticking box 8UU on the main 2017 form, plus filling in details of the accounts on form 3916 or a separate sheet of paper.
A remise gracieuse is a gesture by the tax office which you can request explaining mitigating factors. The amount of reduction is not fixed.
The wording on the forms specifies annual declaration of accounts ‘opened, closed or used’ in the tax year, though it is safest to declare all accounts each year. Some advisers suggest if nothing has changed from the previous year, you tick 8UU and add a note in the ‘extra information’ part (page 2) of the 2042 (or online equivalent) such as 3916 (comptes à l l’étranger): aucun changement sur l’année précédente.
If you think you were wrongly fined, you should make a réclamation (in writing, online in your personal space on impots.gouv.fr, or in person) to your tax office or, if you accept it, but want to plead difficulties paying or special circumstances you can ask for a remise gracieuse or for longer to pay.
If rejected you can apply to the conciliateur fiscal for your department: details may be included in a rejection letter but you can also visit service-public.fr/particuliers/vosdroits/F32477
Finally you may also appeal to the Médiateur des Ministères Economiques et Financiers.
Anyone who omitted an account can correct this at the ‘corriger ma déclaration’ (correct my declaration) service online until December 19.
This service is accessed via your personal space at impots.gouv.fr (you will need to have set up an account on the site, which will be the case if, for example you have previously declared online).
The tax office helpline said that to access the section about foreign accounts you have to click Corriger ma déclaration, then it can be found under Accéder à d'autres rubriques (to the right, at the bottom of the screen) and then you need to select Divers.
If you declared on paper you need to make a written réclamation to make this change.
