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What are the penalties for failure to declare or late payment of the HBJOAT tax?

What are the penalties for non-compliance?

Failure to comply with the reporting and payment obligations for the HBJOAT tax may result in surcharges of 10 % or 40 %, depending on the nature of the breach.

These penalties are provided for by article 1840 X of the General Tax Code.

Incomplete or insufficient declaration

When a declaration contains deficiencies, inaccuracies, or omissions, the amount of undeclared tax is subject to a surcharge of 10 %.

This surcharge applies, for example, when a company only declares part of its taxable turnover or wrongly classifies certain sales as non-taxable.

Late payment

Any delay in payment of a tax already declared or previously assessed also results in a surcharge of 10 % of the remaining amount due.

This is therefore not a progressive surcharge calculated based on the number of days of delay, but a surcharge of 10 % provided for by the General Tax Code.

No declaration

When a company fails to file any declaration, Francéclat can send it a formal notice.

If the situation is not rectified, an automatic tax assessment procedure may be initiated. The amount of tax is then assessed by Francéclat and increased by 40 %.

A payment order can then be issued and the forced collection entrusted to the Public Treasury.

Declaration control

Francéclat may request from the company the information and accounting documents necessary to verify its declarations.

If no response is received within 30 days, the tax authorities may be asked to carry out the audit themselves.

How to regularize one's situation?

When a company realizes that it has omitted a declaration or underreported certain transactions, it must contact Francéclat promptly in order to:

  • file or correct the relevant declarations; ;
  • determine the exact amount of tax still due; ;
  • proceed to payment of the tax and any applicable surcharges.

A voluntary disclosure does not automatically guarantee the cancellation or reduction of penalties. It is advisable to have the amounts verified by your accounting firm.

Prescription

The right of repossession can be exercised until the December 31 of the third year following the year in which the tax became due.

For example, a tax that became due in 2026 can, in principle, be audited and corrected until December 31, 2029.

Official sources

  • Article 1840 X of the General Tax Code
  • Article L. 177 B of the Book of Tax Procedures
  • Francéclat: The HBJOAT tax in 7 practical questions
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