Created by decree on 13 January 2021, following the Action Plan for Growth and Business Transformation (PACTE Law), the tax compliance review (ECF) is a continuation of the measures pertaining to the “new relationship of trust” between businesses and the tax authorities and to the “right to make mistakes”.
Companies required to pay corporation tax can therefore engage the services of a third-party assessor, such as a chartered accountant or an external auditor, etc., to audit general tax matters.
The ten points covered in this audit are standardised, based on a set of defined specifications.
The audit’s purpose is to provide the tax authorities with a conclusive report on the tax issues addressed during the assignment. Choosing to opt for the tax compliance review (ECF) can be done directly on the company’s tax return.
This measure does not exempt the company from its obligations, however, in the event of an audit on a point verified and validated by an outside service provider, the Directorate General of Public Finances (DGFiP) may not require any penalty or interest for late payment. In addition, the company may request a refund of a proportion of the fees paid to the third-party certifier.