In France, undeclared work represents massive tax evasion, with profound implications for public finances and society in general. According to the High Council for the Financing of Social Protection (HCFIPS), this represents the parallel economy. A shortfall of around 10 billion euros for the state in 2022. The problem is that illegal work deprives the state of resources it needs for pensions, health care and unemployment insurance. According to a 2019 study by the Employment Guidance Council, 2.5 million French people work undeclared.
Fraud falls into two main categories: Hidden work with shortfalls estimated between 6.2 and 7.8 billion euros, and errors or omissions on the accounting base, representing 1.8 to 2.3 billion euros. The construction and hotel and catering sectors alone account for half. Another great champion? Micro entrepreneurs, especially VTC drivers and those who provide delivery services and for whom 62 to 70% of contribution is not paid. Certain regions of France are also different. Île-de-France, the south (Languedoc-Roussillon, Paça) and Corsica are among the greatest fans of undeclared work.
Towards strengthening controls
