Property tax: for more taxpayer control?

During the interview, a renowned tax lawyer from the Paris market talks “that we are currently seeing more wealth tax audits (IFIs)”. A few days later, over the phone, one of her colleagues working in Auvergne-Rhône-Alpes agreed: “We have noticed that since the summer there has been a huge amount of tax audits on IFIs.” A period which, coincidentally or not, corresponds to the implementation of the new Bercym declaration of real estate (GMBI). Has the tax administration decided to strengthen inspections of taxpayers liable for real estate tax?

This is because wealth tax is a recent tax on wealth. Codified in Article 964 of the General Tax Code, it replaced very “policy” property tax (ISF) from 1 January 2018. Unlike the former ISF, the IFI applies only to immovable assets, more specifically to households that own assets with a net taxable value of more than 1.3 million euros. in 2022 164,000 taxpayers were subject to property tax for a return of 1.8 billion euros for public finances, according to a report by France Stratégie.

>> Our service – Energy renovation: calculate the amount of your help (MaPrimeRénov’, CEE, etc.) and find the right craftsman for your job

Increasing activity

It is clear from Bercy’s data that inspections related to property taxes (property tax, paid or free) have been on the rise for several years. In 2018, the General Directorate of Public Finance (DGFiP) carried out 67,308 document checks. A number that increased to 78,602 checks in 2022. However, this increase does not reflect specific targeting. Because “he there is no specific national score that is passed to the IFI »According to Damien Robinet, National Secretary of Public Finances Solidaires. On the other hand, “in connection with the Covid-19 epidemic, it shows the desire of the General Directorate of Public Finances to cover all areas of tax control, both for businesses and individuals.” continues the trade unionist.

When Bercy asks for an “explanation”

The tax administration is thus not deprived, as it has full right, to carry out inspections and “request the obliged persons to clarify and justify the composition of assets and liabilities of assets (…) (Book of Tax Codes, Art. L23 A)“. The bet is the valuation of the immovable property stated by the taxpayer in his IFI statement. This is done in the spring at the same time as the income tax return and takes into account assets held on January 1 of the tax year.

“You must declare the market value of the property”, recalls François-Xavier Sœur, founder of Terrae Patrimoine and asset management consultant. To get a reliable estimate of your property, we recommend two solutions: use the Patrim application in your specific area at impots.gouv.fr or go to website of notarieswhich record all real estate transactions.

READ ALSO

Property tax: what to do if it was sent to you incorrectly?

Valuation checks by comparison

In the case of a Bercy check, it proceeds by comparison. It compares the value stated by the taxpayer with recent sales of several properties, a priori similar (area, position, etc.) and in a close geographical area. A method that is obviously not infallible… But “the tax administration is not stupid. She understands when we prove to her that the inspected goods are not similar to those in her sample.’François-Xavier Sœur testifies.

*When contacted, Bercy did not respond to our requests.