By Paul de Neuville, Paris correspondent, for Eurasia Business News – March 14, 2025. Article no. 1450.

The 2024 record of the fight against fraud is particularly good. Not only are the duties and penalties notified to fraudsters approaching €20 billion, but the amounts actually recovered have risen sharply.

The fight against tax fraud is paying off. According to the report published on Friday by the General Directorate of Public Finances (DGFiP), the amounts notified by the tax authorities to fraudsters reached 16.7 billion euros in 2024. The record is once again broken. Since 2021, the sums detected by Bercy agents have increased at a spectacular rate of about an additional billion each year.

But, it is noteworthy: for the first time since 2021, the sums actually collected by the French tax authorities also increased by one billion euros. The public coffers saw 11.4 billion in duties and penalties imposed by the administration on offenders arrive in 2024 – while the harvest had inexplicably stagnated at 10.6 billion euros for several years.

Key Developments in 2024

Technological Advancements: The French tax authorities (DGFIP) have intensified their use of advanced technologies such as artificial intelligence and data mining to detect and prevent tax fraud. By leveraging a “data lake” that integrates data from various sources, they can more effectively identify risky behaviors and target control operations.

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Judicial Measures: The transformation of the Service d’Enquêtes Judiciaires des Finances (SEJF) into the Office National Anti-Fraude (ONAF) marks a significant step in strengthening judicial actions against serious fraud. This includes increased cooperation with judicial authorities to impose harsher sanctions.

New Offenses: The Finance Act 2024 introduced a new criminal offense targeting individuals and entities that provide instruments to facilitate tax fraud. This measure aims to penalize those who enable tax evasion, with severe penalties including imprisonment and substantial fines.

760 additional agents

As the DGFiP did not respond to requests, it is impossible to say on which taxes the controls, notifications and – above all – these collections have been focused, which are increasing sharply. However, a plausible explanation is that tax penalties can take several years to be collected – whether due to legal appeals or payment delays. It is likely that the increase in notifications in recent years has ended up having a delayed impact on actual receipts – an increase that could therefore continue in the years to come.

    Recovery of Fraudulent Amounts

    For the Minister of Public Accounts, Amélie de Montchalin, it is above all a question of the success of a project launched in the spring of 2023 by her predecessor Gabriel Attal. The latter’s “anti-fraud plan” was based on additional resources, including a 15% increase in the number of tax audit staff, i.e. 1,500 agents, over the period 2023-2027. The rhythm seems to be respected so far.

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    “Exactly 760 agents have been recruited or redeployed to focus on tax control actions – from mass control to very large cases of international fraud,” explained the minister.

    Record Recoveries: In 2023, France recovered a record €15.2 billion from tax evasion, surpassing the €14.6 billion recovered in 2022. Additionally, recoveries from social security fraud increased to €1.2 billion. In 2024, French tax authorities recovered € 16.7 billion.

    Notified Duties and Penalties: While specific figures for 2024 are not detailed in the search results, the trend suggests a continued increase in both notified duties and penalties for fraudsters, with amounts approaching €20 billion.

    International Cooperation

    EU-Wide Efforts: France is part of broader European efforts to combat fraud, with the European Public Prosecutor’s Office (EPPO) actively investigating crimes affecting the EU’s financial interests, including VAT fraud.

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    The European Public Prosecutor’s Office had 2,665 active fraud-related investigations by the end of 2024, an increase of 38% from the previous year, with total estimated damages amounting to €24.8 billion. This is 22,5% more than in 2023, according to the latest annual report of EPPO. VAT fraud continues to be the most significant concern.

    Overall, France’s fight against tax fraud is becoming more effective through technological advancements, judicial reforms, and increased international cooperation. These efforts are yielding significant financial recoveries and deterring fraudulent activities.

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    © Copyright 2025 – Eurasia Business News. Article no. 1450.