Practices have changed under Jacques Chirac

A circular should be published soon to explain "black and white" that a Minister of the Budget cannot engage or block a tax control, promised François Baroin, Budget Minister, Sunday. The current law is already clear: the book of tax procedures provides that it is the administration of taxes that "control statements and acts for the establishment of taxes". On the other hand, requests for remission of penalty or transaction belong to the directors of tax services "where are the subject of the application do not exceed 150,000 euros" and the Minister of the Budget "in other cases. Key issues and testimonies of former Ministers.

The Budget Minister is aware of the important fiscal controls Tax records are frequently transferred to the Minister of the Budget, shown by several former holders of the position. It is the case when he gave a legion of honour - it ensures that there is no tax litigation - or when he is asked by a personality on important tax issues. The degree of intervention of the Ministers is variable. Michel Charasse, Minister of Budget from 1988 to 1992, was very interventionist. No tax control could not be launched on a personality without prior go-ahead. It boasts of personally signing the fiscal control of Bernard Tapie, on August 3, 1992. It has also launched tax controls on its own initiative, to combat terrorism in Corsica, for example. Practices have changed under Jacques Chirac. "We have a Chinese wall between political power and fiscal control," says Jean Arthuis at Bercy from 1995 to 1997. Interventionism is done, if not rare, in any case more discreet. It has also limited the power of intervention of the Ministers: be a clearance for access to a folder, and each intervention is "drawn".

How can a Minister stop tax control "A Minister cannot stop an investigation in progress, but it can ensure that it does not start," says a former Finance Minister. First possibility: a tax agent proposes to monitor a suspicious taxpayer. But his record will not be withheld by its Director, sometimes under the leadership of the Office of the Minister. It is therefore not sent to the brigades of audit and the control has no place. Once launched, it is very rare that a control is interrupted. "Tax services are so unionized these cases fit the next day", is a former Minister of Bercy. But the Minister may apply to the financial branch of attention to a folder, show several agents of Bercy. Referred to as "called attention." The administration can practice a form of self-censorship: it eases control procedures or proposes a development of the penalties. Files can even be treated by the departmental directors themselves, the tax being then dismissed officials. This interventionism is followers left as to the right: "It is normal to alleviate a fiscal control if general interest is proven." "The Ministry of the economy is very sensitive to the defence of the capital of companies, for example", indicates Michel Sapin, Minister of the economy in 1992-1993, without judgment on the case of Eric Woerth.

The big fortunes are more controlled than others The most famous personalities (artists, sports, political, etc.) are followed by the National Directorate of audit of tax situations. "This is a problem because it is a cell monitored closely by the cabinet," said a specialist in the folder. In case of tax evaders of the Liechtenstein, for example, Eric Woerth went officially in place to track records. Moreover, there is an automatic procedure for people earning more than 200,000 euro per year or heritage more than 2.5 million euros. Their record is in principle considered every three years. But only the overall coherence of the tax returns is watched (controls on parts). Bank accounts are not verified. In the case of Bettencourt, for example, the tax authorities had no opportunity to learn that she rented or owned an island in the Seychelles. "The quality of the audit depends much of the tax convention signed with the country where the assets are held." If there is no tax treaty, it is impossible to control. "This is the problem of tax havens," indicates a tax officer.LUCIE ROBEQUAIN