If you’ve been following my series of articles on taxation, you now know how to report your accounts and capital gains. But what happens if you make a mistake or forget it? Come and discover, in this article, the consequences of such an eventuality.
Reporting obligations for digital assets
If you are a tax resident in France , then you are accountable to the tax authorities for your activities within the cryptosphere. In the eyes of the tax authorities, you have 3 obligations in terms of crypto declaration:
If you are one of Andreas Antonopoulos ‚ collaborators , and you are paid in Crypto Trader app, you must declare this income. In addition, the units of crypto-assets obtained through mining are also to be declared as income. But we will come back to this subject in detail in a future article.
Regarding the calculation, then the declaration of your capital gains , I invite you to consult the article already published on the subject . Regarding the declaration of digital asset accounts , I outline the modalities in this article .
Sanctions relating to failure to report
When your declarations to the tax authorities contain omissions or errors, it can cost you dearly. Each tax obligation is accompanied by sanctions , which are more or less important according to the fault.
Failure to report digital asset accounts
Let’s start with the consequences of not reporting digital asset accounts. The Article X of the 1736 Tax Code establishes that any breach of the reporting obligation will be sanctioned with a fine of 750 euros . In the event of an omission or inaccuracy that you have not rectified yourself, the fine will be 125 euros .
The fines are increased to 1,500 and 250 euros when the value of the undeclared account exceeds 50,000 € during the year concerned by the declaration.
Non-declaration of capital gains
Now let’s move on to the declaration of capital gains. If you make a mistake in calculating the amount of your overall capital gain, then the tax may be increased by 10% . In the event of a simple error, rectified within 30 days , you will be considered in good faith and the increase will be canceled.
However, in the event of a deliberate breach or in bad faith , the increase will be 40% of the sums due. A deliberate breach is characterized by a partial declaration accompanied by the declarant’s desire not to provide all the information requested by the tax authorities.