It has been awaited for four years by the French tax administration. The Swiss tax authorities plan to transmit to their counterpart in France, in June, the identity (name, date of birth, most current address) of UBS clients presumed to be French taxpayers and some of whom are suspected of tax fraud. More specifically, it is some 40,000 holders of bank accounts in the Swiss bank that existed between 2010 and 2015 that are affected.
The decision was taken on May 12, but the Swiss authorities gave the interested parties 30 days to contest it and take it to Swiss courts. This means that if the latter were to succeed, which seems unlikely, the information concerning them would not ultimately be transmitted to France.
"The cracks in the net are tightening considerably in the fight against tax fraud"
“With this decision, the cracks are tightened considerably in the fight against tax fraud. The French tax authorities will suddenly receive the identity of 40,000 people who had a bank account with UBS in Switzerland between 2010 and 2015, ” analyzes Matthieu de Valonne, associate lawyer at Fidal in Lyon. "Some taxpayers still think they will be able to escape an audit of undeclared bank accounts, but the automatic exchange of information makes the exercise very perilous," continues the lawyer.
Certainly, at this stage, the French tax authorities do not make any comments in the name of tax secrecy. However, once the information has been received, he should be able to carry out verifications and, in the event that the individuals concerned have not respected their tax obligations, to tax adjustments which could have serious consequences for some. "The people concerned have an interest in being proactive and quickly regularizing their situation," continues Matthieu de Valonne. They risk tax sanctions following the recovery, but also criminal sanctions. Those guilty of tax fraud face up to 7 years in prison and a 3 million euro fine. ”
A request for administrative assistance from 2016
The business was not won in advance for France. This decision by the Swiss tax authorities responds to a request for administrative assistance which had been formulated by the General Directorate of Public Finances (DGFiP) four years ago already, in 2016. In 2012 and 2013, the German authorities had seized from branches UBS lists containing bank account numbers of persons presumed to be French taxpayers. The DGFiP then wanted information on the identity of the holders of these accounts. But then, the UBS bank had then brought justice against the French request. Then, in a judgment rendered in July 2019, the Swiss Federal Court finally gave the green light to the transfer of the information requested by the French authorities.
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