Billions of euros to recover. The government’s new plan against benefit fraud takes the form of an amendment to the Social Security finance bill, which was examined at the end of 2022 in the National Assembly. The most spectacular reform is the cessation of social assistance payments to a non-French or non-European bank account. The measure must come into force on July 1, 2023. Pensions are not included in this reform.
These include the ASPA (solidarity allowance for the elderly), family benefits, the RSA (active solidarity income) and the supplementary disability allowance. The bank accounts concerned are those outside the European Union, i.e. outside the SEPA zone. All member countries of the European Union will be able to continue to receive the payments, including Monaco, Switzerland, Andorra, San Marino and the Vatican.
Minister Gabriel Attal pointed out last October to the National Assembly that “the question of fraud in social benefits which are paid to people who do not reside in our territory regularly feeds a certain number of studies, articles, and rightly scandalizes our fellow citizens”, believing that “to defraud is to steal, quite simply”.
In the minister’s entourage, it is emphasized to Europe 1 “that there is a desire to go all out to respond to the susceptibility of a growing part of public opinion on this subject. And not to leave the door open to extremes. What will be the impact of this measure on fraud? How much does the state hope to recover?
“INSEE estimates VAT fraud at around 20 billion euros per year”, detailed Gabriel Attal to Parisian, judging that if there has been progress on social fraud, “this still represents several billion euros “.
The reform should make it possible to save several tens of millions per year: these “payments, for which there are sometimes doubts about the real existence of the beneficiary (…) represent 150 million euros over five years”, specified in particular The Minister. But it is difficult to accurately estimate the results that will be obtained: by nature, fraud is difficult to quantify. However, do you have to declare a bank account abroad?
If you are domiciled in France or Monaco, all bank accounts abroad must be declared to the tax authorities, whether they are accounts opened, held, used (at least once) or closed in the year abroad. The declaration must be made with a banking establishment, or any other person authorized to do so (notary, stockbroker, etc.). Whether you are the account holder or have a power of attorney.
Any violation will be penalized with a fine of €1,500 per undeclared account, a fine which rises to €10,000 per account if it is located in a State which has not concluded a convention with France to combat fraud and tax evasion.
