In a letter addressed to the financial magistrates, the Keeper of the Seals, the Minister of Action and Public Accounts and the Minister of Solidarity and Health respond to the criticisms of the flaws in the fight against tax and social fraud. The government has entrusted INSEE with the task of evaluating this fraud.

Two months after the publication of the report of the Court of Auditors on the evaluation of fraud in compulsory deductions, the government responded point by point to the criticisms of the financial magistrates.

It is the shepherd’s response to the shepherdess. Two months after the publication of the report of the Court of Auditors on the evaluation of fraud in compulsory deductions, the government responded point by point to the criticisms of the financial magistrates. In a letter to which “Les Echos” had access, the Keeper of the Seals, the Minister of Action and Public Accounts and the Minister of Solidarity and Health highlight the progress made and the means made available to improve the fight against fraud.

They announced that they wanted to follow up on the Court’s recommendations to continue the evaluation work by entrusting this task to INSEE. “INSEE offers all the guarantees of independence and the necessary technical skills and the government intends to give it this new role”, is it written in this letter dated January 30.

Fantasies about fraud

As a reminder, the Court of Auditors reported in early December its work on the assessment of tax fraud, ordered by the President of the Republic during the great debate, in which it renounced to advance on a precise costing. On the other hand, it recommended that the public authorities go further in this assessment to prevent fraud from being subject to scrutiny. “Fantasies” who “Undermine the quality of the democratic debate on taxes”.

In this report, the Court focused its conclusions on the flaws in the fight against fraud. It is also to these criticisms that the three ministers concerned, Gérald Darmanin, Nicole Belloubet and Agnès Buzyn, respond.

Decrease in control revenues

On the decline in revenue from tax audits, the government replies that the results may fluctuate depending on a few exceptional cases in large companies. “The trend that emerges in 2019 is that of a significant increase in results”, indicates the letter, citing an increase in inflows of 1.7 billion at the end of October 2019, compared to the same period in 2018.

In addition, comparisons with our European neighbors should “Be done on comparable data”, argue the ministers. According to them, the report would have compared figures of expected receipts in Germany and the United Kingdom with receipts actually collected in France.

Modernize information systems

As for the criticisms on the means and the training, they were heard, answers the government. To modernize its information systems, the tax services will invest 40 million euros, in particular in “data mining” techniques to target controls. The training effort “Increased by 7% for the auditors in charge of on-site inspections, whose professionalism is increasing”, indicates this letter.

While the Court of Auditors criticized the lack of coordination between the various administrations (tax, justice, Urssaf), and especially the lack of interest in the National Delegation for the Fight against Fraud (DNLF), the government is committed in this letter to resume interdepartmental work. “A new national plan to fight against fraud in social benefits and contributions over the period 2020 to 2023 is being drawn up”, he says.