Documentary inspection, accounting audit, request for information, examination of personal situation… Tax audits can take many forms, in France as in Switzerland. In both cases, the aim is to strike a balance between the rights of the taxpayer and the powers of the tax authorities. In a cross-border context, vigilance is all the more essential, as misrepresentations, recharacterizations or legal inaccuracies can lead to substantial and lasting reassessments. Different types of control: France vs. Switzerland In France, tax audits are governed by the Book of Tax Procedures. They may concern private individuals (examination of their personal tax situation, ESFP) or companies (audit of accounts, documentary inspection). Each stage is formalized: notice of audit, request for documents, adversarial dialogue, rectification proposal.In Switzerland, the procedure is largely cantonal. The tax authorities can intervene in a targeted manner, particularly when filing a tax return or in the event of a change in situation. Control methods are sometimes more flexible in form, but just as rigorous in substance. The taxpayer is required to produce the requested supporting documents within a short timeframe, failing which an ex officio tax assessment may be applied.In both countries, an audit may be triggered by an alert, a cross-referencing of files or an apparent inconsistency in declarations. Increased vigilance in cross-border situations Certain situations attract particular attention from tax authorities: income received in one country but not declared in the other, holding of foreign bank accounts, presence of real estate in France by non-residents, opaque non-trading companies or holding

In a tax system based on negotiation and transparency, Switzerland allows taxpayers to obtain an official position from the tax authorities on their proposed tax treatment before making any declaration or carrying out any transaction. This is known as a tax ruling. Although little known to the general public, this tool is commonly used by well-informed taxpayers, particularly in a complex cross-border or wealth context. Here’s what you need to know about how it works, its conditions and its strategic value.   Tax rulings: prior agreement with the tax authorities   A ruling is an advance position taken by the tax authorities on a specific point of law, at the request of the taxpayer. It is not an official, published procedure, but a recognized and widely accepted practice in Switzerland. A ruling is a formal validation of a future tax situation, particularly when it is complex, unusual or open to interpretation. This mechanism is particularly useful in the following situations: structuring an investment, setting up a company, qualifying a financial flow between two countries, setting up a tax package, transferring assets, or leaving or returning to Switzerland.   A flexible but controlled procedure   The ruling procedure takes place directly with the tax authorities of the canton concerned. It is based on a detailed presentation of a project or situation, accompanied by a statement of the facts, relevant documents and a proposal for taxation. The administration examines the request, may ask further questions and notifies its position in writing. Although

In international situations, the boundary between de jure residence and effective presence becomes a crucial tax issue. Any person or entity carrying on business or holding assets in a country without being domiciled there for tax purposes may be required to appoint a tax representative, or even be reclassified as a de facto tax resident. In both France and Switzerland, these obligations are based on precise legal provisions. Knowing and applying them can prevent transactions from being blocked, taxes from being raised and cross-border disputes from arising.   Tax representation of non-residents in France   The appointment of a tax representative is compulsory for individuals or legal entities not domiciled in France (outside the EU, Iceland and Norway), in cases expressly covered by the General Tax Code (CGI). This is the case in particular:– When a non-resident sells real estate located in France, in accordance witharticle 244 bis A of the CGI for individuals andarticle 219 of the CGI for foreign companies.– When a company not established in France is liable for French VAT without having a permanent establishment within the meaning ofarticle 283-1 of the CGI.– When a non-resident taxpayer generates French-source income taxable underarticle 164 B CGI. The appointment is made using CERFA form n°15948*01, which must be submitted before the deed of sale is signed, particularly in the case of real estate sales. The representative must be accredited by the tax authorities, be domiciled in France and be jointly and severally liable for payment of the tax

Taxation between France and Switzerland is based on two distinct systems, governed by bilateral agreements but applied independently. An incorrect declaration, an involuntary omission or a misunderstanding of the rules can have serious consequences: requalification, adjustment, penalties or double taxation. Here’s an overview of the most common errors in Franco-Swiss tax returns, and how to correct them effectively.   Reporting obligations in both countries   When a taxpayer resides in one country and receives income in the other, or retains assets in the departed state, he or she is often subject to tax obligations in both jurisdictions.French residents must declare all their worldwide income. They must also mention the existence of foreign bank accounts (form no. 3916), life insurance policies taken out outside France, or real estate held abroad. Non-residents, on the other hand, must declare French-source income (notably property or professional income) using form 2042-NR. In Switzerland, the declaration is cantonal and covers all the taxpayer’s worldwide income, unless otherwise agreed. Some cantons also require detailed declarations of real estate held abroad.   Frequent errors in Franco-Swiss declarations   A number of errors are recurrent in cross-border files: Omission of a Swiss bank account from a French tax return, particularly when it is no longer active but still open; Failure to declare property income earned in France by a Swiss resident, even though the bilateral agreement wrongly exempts him from local taxation. Double reporting of certain income (dividends, pensions, capital gains), due to disregard of the allocation key provided

An oversight, a mistake made in good faith or a poorly managed cross-border situation can lead to a tax offence, sometimes without the taxpayer being fully aware of it. Whether it’s a question of undeclared foreign accounts, a property that has been overlooked in the declaration of assets or a dividend that has been incorrectly broken down, it is often possible to regularize the situation spontaneously, before a tax audit is carried out. But to do so, you need to act correctly, methodically and strategically.   Why regularize on a voluntary basis ?   Spontaneous denunciation (or voluntary corrective declaration) enables the taxpayer to regain the initiative vis-à-vis the tax authorities. It consists in spontaneously declaring an error, an omission or an irregular situation before the launch of an audit or the receipt of a request from the tax authorities. This gesture can make it possible to:– limit or avoid penalties;– demonstrate good faith;– regularize a risky situation without media coverage or litigation;– start afresh on a sound footing in the event of a future transfer of assets, expatriation or inheritance.   What situations are covered ?   Voluntary regularizations concern many frequent cases, such as : – Foreign bank accounts forgotten or not declared (often old or inactive);– Real estate located outside the country of residence and not included in the declaration (IFI in France, cantonal wealth tax in Switzerland);– omitted foreign income (interest, dividends, pensions, rents);– undeclared patrimonial companies, in particular when they hold real estate;– errors in