Uncompleted tax declarations for previous years

[Buster_Gutte]

I have a friend who is a widow, who came to live in France, with her husband, in late 2004. He died, suddenly, in May 2005 before all the residency forms had been completed, including what would have been their first tax declaration. The notaire, in finalising her husband’s estate  told her that all the tax matters had then been dealt with. Since her husband’s death, she has no revenue; she has lived off her savings, and has never completed a tax declaration. I think she should complete a tax declaration but am afraid she will be punished if she has not done one for two years. Can you advise what she should do and what view the DGI take of such a state of affairs?

TIA

Buster

[Bluebells]

By far the easiest solution for her is to go to the tax office, explain to them the situation and start the ball rolling.   If her monetary situation is as you say she will hardly be paying anything anyway.   The general impression I get from this site and others, is that the tax officials are not that draconian but it is far better to get her going and in the system sooner rather than later, this would have to be in her best interest.

[Ron Avery]

Without knowing more its difficult to make a firm recommendation other than for her to go to the tax office and explain her circumstances.  You don't say how old the widow is or what her means of income was prior to her husband's death. Does she receive any form of pension?  Many private schemes pay half pension to dependents, you sure she only has savings?

However, if she only has savings, she has income.  Unless its kept under the bed, the interest from a savings account is treated in France as unearned income and should be declared.  She needs to go to the tax office and make a declaration for the missing years.  It is unlikely that she will be fined or unless living off a mountain of savings, pay tax,  but she will be liable to pay social charges on the interest as this is treated as unearned income.

[Buster_Gutte]

Thanks for the comments and advice. I'll talk with her again soon and hope she'll feel more like tackling the problem

Buster