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France pulls in €18 billion through fighting tax fraudsters

The French government added a staggering €17.9 billion to its public coffers in 2017 thanks to measures aimed at stamping out tax fraud and evasion.

Published: 17 July 2018 17:04 CEST

France pulls in €18 billion through fighting tax fraudsters

Photo: AFP

France continues to claw back billions of euros owed by French tax fraudsters.

According to an annual report by the country’s General Directorate of Public Finance (DGFIP), adjustments to the tax system resulted in €17.9 billion in tax money recovered in 2017.

That represents a decrease of € 1.6 billion compared to 2016, when € 19.5 billion was retrieved, and €3.3 billion less than 2015, when a record €21.2 billion was recuperated.

But these figures still showcase the success of the Ministry of Finance’s so-called 'drunk tank', a scheme that allows people with hidden bank accounts overseas to legalise their tax situation and only face light penalties.

Many French citizens with offshore accounts and other tax-evading schemes have chosen this option over facing more severe penalties from authorities in due course.

This one measure was alone responsible for €2.5 billion retrieved in 2016 and more than €1.3 billion in 2017, Le Parisien reported.

However, the French taxman’s hunt for scammers is far from over.

Fifty senior officials at the Ministry of Finance in Bercy are on a constant lookout for fraudsters who are trying to hide their tracks and money offshore and/or profit from lucrative tax arrangements.

If caught, defrauders face five years behind bars and half a million euros in penalties.

Bercy also recovered €11.1 billion in 2016 and €9.4 billion in 2017 in old tax revenue owed to them by tax evaders after legal disputes.

And even though the amount recovered from tax fraud dropped in 2017, France’s overall tax earnings increased from €594 billion to €601 billion.

As for income tax, the annual amount recovered also rose from €76.5 billion in 2016 to €77.6 in 2017.

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Meet France's tiny cars that you don't need a licence to drive

The range of ‘cars’ known as voitures sans permis have gained something of a following among young people living in towns and cities – in part because it’s legal to drive them from the age of 14, and you don’t need a full driving licence.

Really.

These are small, lightweight vehicles that are subject to strict restrictions on size and speed, and cannot be used on motorways or high-speed roads that, as the title suggests does not need the driver to hold a full licence.

The first thing you’ll likely notice about them is that they are small – about half the size of a regular car.

It’s probably easiest to think of them as a hybrid between small motorcycles and standard cars.

They used to be quite big in rural France, but because they have a roof, and windows, and four wheels, they are considered safer than mopeds for young people looking to get around in urban environments, so you are likely to see them taking up car parking spaces in and around lycées, for example.

They’re not just for kids though, an increasing number of city-dwellers who just need a runaround for local trips are attracted to them because of their price and also because they’re easy to park (being so tiny).

Although they’re called ‘no licence’ vehicles, you do in fact need some paperwork.

The driver of a voiture sans permis must:

Be at least 14 years old;
Hold an AM licence (which is still commonly called a brevet de sécurité routière or BSR) if they were born after January 1st, 1988. Anyone born before this date does not need to hold this licence;
Cannot drive if their driving licence has been suspended by the courts;
Cannot take more than one passenger in their licence-free car;
Cannot travel on motorways, fast main roads or bypasses.

What’s an AM licence?

As we’ve already mentioned, many people – particularly older road users in France – will refer to this as a BSR, which was the qualification that allowed people to ride a motorcycle with an engine size of 50cm³ or smaller, or a licence-free car.

The newer AM licence does that, and also permits the holder to ride a light quadricycle (quad bike) with the same engine size limits.

Getting this licence costs between €150 and €400 and involves theoretical and practical aspects. Applicants must pass a theory exam and undertake eight hours of driving – three of which must be in traffic with an instructor.

Once awarded, an AM licence is valid for 15 years across EU countries. Remember, only motorists born on or after January 1st, 1988, need to have undertaken the requisite training to drive a vehicle sans permis.

So what cars can you drive?

Technically, they’re not cars, per se. They’re quadricycles, or four-wheel mopeds.

And they have technical limitations. Since January 1st, 2017, these vehicles are limited to an empty mass of 425kg, must have a small fuel engine or an electric engine limited to 6 kW, and be able to carry no more than two people, including the driver.

Their maximum speed is limited to 45km/h, and they cannot be more than three metres in length.

There are a number of makes and models out there. Among the major manufacturers, Citroen make the electric AMI, and Renault the Twizy, both of which are classed as vehicles sans permis.

Aixam and Ligier each make a range of vehicles that you don’t need a full licence to drive.

Watch out, too, for the Chatenet and the Italian Casalini.

So they’re not just a France thing?

Not at all. You’ll see them on roads in Germany, Portugal, Italy and Belgium.

Okay, how much?

The AMI is around €7,990 to buy – though you can arrange a location longue durée deal from €49.99 per month (which includes the government financial aid available for all types of electric car leasing).

Otherwise, prices tend to range from €10,000 to more than €16,000 – and you’ll still need insurance. So, not necessarily cheap.

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