If a taxpayer does not pay or file their taxes on time, they are subject to penalties from the tax authorities. But when the tax administration is at fault, the taxpayer is also entitled to compensation other than compensation. Compensation that no longer requires any action on the part of the person concerned.
From January 1 now the taxpayer has to “Start Liberation Process” against the tax authorities “to get rid of” When the latter makes a mistake in collecting tax. This fact explains the consumer association UFC-Que Choisir.
Until 2023, when the taxpayer made a mistake, the taxpayer was entitled to a refund. But action had to be initiated to get compensation. Apart from that, the tax authorities may be satisfied with the recovery of additional tax and hence not pay “basic interest” to the taxpayer.
But from January 1, things have changed. Apart from the reimbursement of additional tax, the tax authorities will now have to pay “fundamental interest” to the concerned person, without taking any further action. For this compensation amount, it is equal to the amount paid by the taxpayer when he declares his taxes late, i.e. 0.2% of the tax amount per month. ” If the tax authorities reimburse you in June 2024 for the €1,000 tax overclaimed from you in September 2023, you will receive €18 in default interest alone (€1,000 x 0.2% x 9 months). », details the UFC Que Choisir on its website.
Cases where tax authorities do not provide compensation
Further, the consumer association clarifies that “ This interest is not taxable, as it is not considered income ” However, there are some cases that do not give access to this refund. The first is when there is a mistake in tax collection from the taxpayer. If he fills his tax return incorrectly, the tax authorities will not pay any default interest, but only a refund. .
Another case that does not trigger compensation is the reinstatement of tax credit or additional withholding tax. In question, this refund is linked to a change in the taxpayer’s situation and not to an error of tax administration. Additionally, UFC Que Choisir recalls that “ If you have to take legal action to recover the wrongly paid tax, the costs associated with the process (service costs, documents, fees collected by the court registry, etc.) will be refunded to you only if you win. “
