The tax assessmentnotice

Step 1: The reassessment notice

A notice of assessment is a document in whichadministration informadministration that they have initiated a procedure known as “assessment by the tax authorities.”

This procedure applies when a taxpayer is considered to be in default because they have failed to file their tax returns or respond to requests fromadministration such as requests for clarification or supporting documentation).

The tax authorities must generally send the taxpayer a formal notice to fulfill their obligations—such as filing their tax returns—before initiating this procedure. However, in certain situations, they are exempt from sending such a notice (LPF, Art. L.67 and L.68).

Upon receipt of this notice,administration generally wait 30 days before sendingtax bill request payment of the taxes.

However, in certain situations, taxpayers have the option of appealing to certain commissions. It is also recommended that you submit a response addressing the points raised in theadministration’s letter.

We recommend that you contact a lawyer as soon as you receive this reassessment notice discuss your situation.

Step 2: The taxpayer’s comments and the entry of commissions

It is recommended that you send a written letter toadministration reassessment notice administration why the reassessment is unfounded or excessive. You should submit these comments promptly after receiving the reassessment notice in the hope that they will be taken into account beforetax bill is issued.

If you have been subject to a personal tax audit, you likely have the option of appealing to the Commission on Direct and Sales Taxes to request its opinion on the tax assessment.

To file a claim with the commission, you must submit a request toadministration 30 days of receiving the reassessment notice, preferably by certified mail with return receipt requested to have proof of the request.

Step 3: Thetax bill

Once all these steps have been completed,administration is entitled to send you a tax bill. This is considered the “tax bill,” and it is from this point on that the tax becomes due. If you wish to contest the assessment and then take the matter to court, you must file a formal objection withadministration .

However, you have the option of requesting a payment deferral.

Contact Us

If you have received a reassessment notice and would like to discuss it, please contact us by email (contact@mispelonavocat.com), preferably attaching the reassessment notice . We will do our best to respond as soon as possible.

  • It is important to respond in writing to the reassessment notice and to contest the entire tax assessment.

    To challenge the tax assessment, you can start by stating whether you disagree with theadministration description of the situation. For example, if the tax authority believes that you failed to file your tax return, you can challenge this claim by providing supporting documentation. You can also challenge the figures used by the tax authority if, for example, you believe your profit has been overstated.

    Next, you can challenge the law applied by the tax authorities if you believe they did not apply the correct section of the General Tax Code. You can also challenge the tax authorities’ interpretation of the law.

  • The law does not necessarily provide for the right to challenge a reassessment notice , but it is still advisable to send a letter to the tax inspector who signed the notice, explaining why you disagree.

    In certain situations, you have the option of appealing to the Commission on Direct and Sales Taxes, which will issue an opinion on the assessment.

    Once you receivetax bill, you will have the opportunity to file a claim to contest the assessment.

  • The law does not provide for the option of responding to a reassessment notice . However, in practice, it is advisable to submit written comments to the tax authorities explaining why you disagree with the reassessment.

    There is therefore no deadline for submitting these comments, but it is best to send them within 30 days of receiving the reassessment notice in order to ensure that they are taken into account by the tax authorities.

  • Generally, notices of tax reassessment are sent byadministration certified mail with return receipt requested.

    If you have not received the registered letter or a notice informing you that you need to pick up a registered letter at the post office, the procedure leading to the reassessment may be invalid.

    administration , however, remedy this procedural defect within a certain time limit.

  • No, the reassessment notice simply a notification thatadministration issuing you a tax assessment.

    Payment must be made upon receipt of thetax bill.

    In the case of income tax, the payment due date is usually listed in the letter accompanying the tax bill.

    With regard to corporate income tax, it is generally stated that you must make payment without delay. You generally have about 30 days to make the payment.administration may sendadministration a formal notice to pay if they believe the payment should be made sooner.

    If you later wish to contest the tax assessment and do not wish to pay the taxes, you may request a payment extension.

  • You are not required to have a lawyer assist you in responding to the reassessment notice.

    Nevertheless, receiving a reassessment notice an already complicated situation for the taxpayer, as they do not have the opportunity to discuss the matter withadministration thetax bill is issued.

    Having a lawyer involved can help facilitate communication withadministration ensure that the amounts claimed byadministration been calculated correctly.

    Above all, having a lawyer involved as early as possible in the tax audit ensures that the procedure is conducted properly and that the taxpayer is able to benefit from all the safeguards to which they are entitled.

  • Statutes of limitations for tax matters vary depending on the type of tax; they can be 3 years, 5 years, or even 10 years in certain circumstances.

    The law generally provides that the time limit within which the tax authorities must notify you of an assessment expires in the following cases:

    • Income tax and the special surtax on high incomes (LPF, Art. L.169, para. 1): December 31 of the third year following the year for which the tax is due (e.g., for 2020 income, reported in 2021,administration until December 31, 2023, to issue a tax assessment).

    • the real estate wealth tax (IFI):

      • December 31 of the third year following the filing of the declaration regarding the value of the items listed in the declaration (LPF, Art. L.180 LPF)

      • on December 31 of the sixth year following the year for which the IFI is due, for items not included in the return or if no return has been filed (LPF, Art. L.186).

    • Corporate income tax (LPF, Art. L.169, para. 1): December 31 of the third year following the end of the fiscal year (e.g., if a company’s fiscal year ends on December 31, 2020,administration until December 31, 2023, to issue a tax assessment. The same applies if the company closes its fiscal year on June 30, 2020).

    • the research tax credit (LPF, Art. L.172 G): December 31 of the third year following the year in which the special return for this tax credit is filed (e.g., a company with a fiscal year-end of December 31, 2023, files its tax return in 2024 along with the return for the research tax credit;administration until December 31, 2027, to issue a tax assessment).

    • VAT (LPF, Art. L.176) or the tax on insurance contracts (LPF, Art. L.182): December 31 of the third year following the year in which the tax became due. The due date for VAT depends on the transactions carried out (sale or delivery of goods, provision of services, importation, exportation, etc.)

    • registration fees, inheritance taxes, or gift taxes:

      • on December 31 of the third year following the registration of the deed or declaration, when, to put it simply, the property has been properly declared but its value is incorrect (LPF, Art. L.180).

      • on December 31 of the sixth year following the registration of the deed or declaration, for property or assets not listed in the declaration (LPF, Art. L.186).

    • withholding taxes (LPF, Art. L.169 A): the third year following the year for which the tax is due

    • property tax (LPF, Art. L.173): December 31 of the year following the year for which the tax is due (e.g., for the 2023 property tax, paid in 2023,administration until December 31, 2024, to issue a tax assessment).

    • the CVAE and the CFE (LPF, Art. L.174): December 31 of the year following the year for which the CVAE or the CFE is due.

    Under certain circumstances (unreported income, undeclared foreign bank accounts, international administrative assistance, etc.), the statute of limitations may be extended, and the time limits mentioned above do not apply.