The tax authorities are particularly targeting establishments using permissive cash register software, which allows cash transactions to be erased to conceal turnover. These operations, governed by Article L16 B of the French Tax Procedures Code (Livre des Procédures Fiscales), can lead to in-depth tax audits and costly adjustments.
What should you do if your restaurant is affected?
How can you contest a tax inspection or prepare for an audit? Arfé Avocats, a specialist in tax litigation, guides you.
1. Why is the tax authority targeting restaurants?
Permissive cash register software: Some tools allow cash sales to be deleted, artificially reducing the reported turnover.
Privileged target: Breweries and restaurants, often dealing in cash payments, are in the tax authority’s crosshairs.
Recent example: The Canard Enchaîné article “Ces restos qui fraudent le fisc à fond la caisse” (“These restaurants that defraud the taxman full throttle”) illustrates this trend.
2. Legal framework for tax inspections
Legal basis: Tax inspections are authorized under Article L16 B of the French Tax Procedures Code (LPF), subject to an order from the Juge des Libertés et de la Détention (JLD, Judge of Liberties and Detention).
Contestation deadline: 15 days to challenge the tax inspection or the JLD’s order. This is a very short deadline requiring a quick response.
Logical follow-up: A tax audit is generally triggered 9 months after the tax inspection.
3. What to do in case of a tax inspection?
a. Contesting the tax inspection
Check legality: The JLD’s order must be motivated and proportionate. Any procedural flaw (e.g., lack of justification, irregularities in the seizure) can invalidate the tax inspection.
Mandatory deadline: Act within 15 days to appeal to the administrative court.
b. Preparing for the tax audit
Gather justifications: Collect invoices, cash register statements, and accounting documents as soon as the tax inspection occurs.
Get professional support: A lawyer specializing in tax litigation (such as Arfé Avocats) can:
- Analyze procedural flaws.
- Negotiate with the tax authorities to avoid costly adjustments.
- Defend your interests in court by exploiting the administration’s inconsistencies.
c. Defense strategy
Negotiation vs. litigation: Some cases are better settled through negotiation rather than litigation, where the administration often has an advantage.
Arfé Avocats’ expertise: Our firm identifies angles of attack to “break” the tax authority’s position.
4. Why act quickly?
Tight deadlines: 15 days to contest the tax inspection is little time to file an appeal.
Financial stakes: A tax audit can lead to heavy adjustments or even criminal prosecution for fraud.
Strategic advantage: The sooner you act, the better your chances of identifying procedural flaws or negotiating a favorable agreement.
5. Arfé Avocats: Your ally in tax litigation
Our firm intervenes to:
✅ Contest tax inspections.
✅ Assist you during tax audits to limit adjustments.
✅ Represent you in court with a tailored strategy.
Need urgent help? 📞 +331 84 25 70 99 | ✉ antoiner@arfe-avocats.com