Tax - terrified

[Eva]

Hello - I am new here (3 years in France) and am very scared that I have messed things up a lot.

I've been paying taxes in France for 2 years on my income which all comes from the UK (and a little bit from a couple of other EU countries but not France at all). I was v keen to switch over to paying taxes here as I use roads, schools etc and had a baby here last year, so it seems only right.

I have an accountant who's not actually an accountant, but who knows the system and helps me massively with paperwork, fills in tax returns etc.

We did the 2006 tax return at the beginning of this year. Now, some of my income had had UK withholding tax deducted from it, which we obviously told them about on the form. I've just received a letter asking for the paperwork for my UK income and details of the tax I'd paid on it.

No problem, I thought, and went to dig it out. Only to discover that at the beginning of 2007 I had a refund of withholding tax - I was up to my eyeballs in new baby and hadn't really registered this, and it was in my 2007 not 2006 file. So of course I have to pay tax to the French authorities on the money which I am most happy to do.

I'm now petrified that a. they won't believe that this was an oversight, and b. they'll investigate me and fine me and put me in prison! I find the state bureaucracy very hard to deal with but always do my level best to get it right.

Will they believe me?

Am I allowed to amend the tax return?

Have I commited an offence by signing it without declaring the extra income?

Can anyone help? Is there anything I can do? As may be obvious, I'm panicking a bit here.

Thanks so much in advance

E

[Martin963]

I have only very limited experience of tax in France because we are resident in the UK,   but I did talk to our local tax lady a couple of times the first year we were here.   She could not have been more helpful,  charming,  re-assuring,  and generally kind.   Many others speak very highly of her.

Unless you are very unlucky,  I guess that a straighforward admission (coupled with the perfectly reasonable excuse you have) and assurance that you want to put things right will probably do.   I've met very few French people who do not meet you very much more than half way if you make the right initial moves.

I can understand you're worried,  and I can't guarantee that you won't have an uncomfortable few minutes,   but a request to see face to face whoever deals with your tax in your area will I am sure resolve things quickly.

Bon courage.

[Tony F Dordogne]

Siorry Eva, if your accountant isn't actually an accountant, he/she is probably 'just' a book keeper.  I've seen a few people in this area really come unstuck by not using a qualified accountant, one of whom got stuck with a real problem when he sold his business, the others being left high and dry by somebody who wasn't an accountant tho he has an established business in this area.

 I'd change to an accountant, at least you have some comeback if it goes wrong because he/she gets things wrong.

And I think Martin has it right, just go and tell the tax office, get it over with.

[Eva]

Thank you both, Tony and Martin. I'm calling the tax office this morning to make an appointment, and hope to have all of this cleared up as soon as possible.

And I will definitely look for a proper accountant. I would love a bit more security.

Thanks again

E

[londoneye]

Eva

Don't panic.   Myself and OH were called in to tax office after submitting my first tax return (clearly incorrectly !) - like you I had visions of prison and gendarmes at the gate, but the woman at the tax office was very nice and just explained that we had completed some boxes incorrectly and went through a few details with us for clarification.   She gave us back one form, which we had to amend, and then arranged a date to return it.   when we did she looked amazed that we had turned up at the due time, glanced at form and that was it.   I mumbled an apology for have caused her extra work and she said along lines of 'don't be daft, thats what I am here for'.

The key thing is not to panic, at end of day, like UK tax, what they really want is what is due to them.   It's much easier to get what is due nicely than to have to spend more money and resources on sending you to prison !    As you made a genuine error I am sure they will understand that, especially if you explain about the baby etc.   If all else fails plead post natal depression and see if that helps.

[suein56]

[quote user="Eva"] Only to discover that at the beginning of 2007 I had a refund of withholding tax - I was up to my eyeballs in new baby and hadn't really registered this, and it was in my 2007 not 2006 file. So of course I have to pay tax to the French authorities on the money [/quote]

Forgive me if I am missing something here, but if you had paid the withholding tax in 2006 then your 2006 declaration here was completed correctly. If in 2007 you received a rebate of the w/h tax paid then that will go down as income on your 2007 declaration, wont it? And you will pay the tax due on that income in 2007 as normal.

Sue