International Tax Lawyer
in Bordeaux

FAQ

Frequently asked questions: Maître Alexis Germe, your international tax lawyer in Bordeaux

Have a question about your international tax situation? The answer may already be in our FAQ.

• + Why should I engage a tax lawyer during a tax audit?

  This question concerns all taxpayers, individuals and business owners alike, who are subject to a tax audit and are wondering whether to seek assistance from an expert. The involvement of a tax lawyer is often decisive.

  A tax audit is not a mere formality. It is a complex set of operations carried out by a tax inspector or an officer from the tax authority. Its purpose is to scrutinise your tax returns, analyse your tax management and, for companies, conduct a detailed accounting review.

  A tax lawyer is far more than a simple adviser. Their involvement is strategic for several reasons:

  • Technical expertise: they know the sensitive areas of tax audits, anticipate the tax authority’s requests and prepare responses to avoid misunderstandings or unjustified reassessments.
  • Legal protection: they carefully review documents sent to the inspector to prevent you from inadvertently self-incriminating, and ensure that the procedure respects your rights (taxpayer’s charter).
  • Litigation management: in the event of persistent disagreement, the lawyer knows how to contest, draft a complaint and seize the competent courts to defend your interests.

  Maître Alexis Germe, tax lawyer, brings his experience to the defence of taxpayers. He has assisted numerous companies and individuals in their dealings with the tax authority, providing rigorous legal assistance from the amicable phase through to tax litigation.

• + Am I a French tax resident if I live abroad for most of the year?

  Not automatically. French tax law retains four alternative criteria (permanent home, principal professional activity, economic interests, habitual residence). Even if you live mainly abroad, you may remain a French tax resident if your family home or principal economic interests are maintained in France.

  Where a bilateral tax treaty applies, its tie-breaker rules take precedence over domestic law and definitively resolve the question in favour of one or the other State.

  Maître Alexis Germe analyses each client’s situation individually, prepares the necessary evidential files and defends your position before the tax authority if it challenges your foreign residence.

• + How can I avoid double taxation on my foreign income?

  France has signed more than 130 bilateral tax treaties to prevent the same income from being taxed twice. These treaties provide for two main mechanisms:

  • The exemption method: income attributed to the other State is excluded from the French tax base
  • The credit method: a tax credit equal to the foreign tax is offset against the French tax due

  The convention applicable to your situation determines which method applies to each category of income. A precise analysis is essential to avoid tax calculation errors and to prevent double taxation without recourse.

• + What are my reporting obligations for a bank account held abroad?

  Every French tax resident must declare annually their foreign bank accounts via form 3916, attached to their income tax return. This obligation applies to each account opened, used or closed during the year, even if it generates no income.

  Penalties for non-compliance are significant:

  • 1,500 euros per undeclared account (raised to 10,000 euros if the account is in a non-cooperative State)
  • Recovery of income generated by the account, increased by 40% to 80% depending on the severity
  • Risk of criminal prosecution for tax fraud in cases involving significant amounts

  The automatic CRS/FATCA exchange now allows the tax authority to detect these omissions without an audit being triggered by the taxpayer.

• + What is the inpatriate regime and how do I benefit from it?

  The inpatriate regime (Article 155B of the French Tax Code) allows employees and executives recruited abroad to work in France to exempt from income tax their inpatriation bonus, either at its actual amount or on a flat-rate basis at 30% of total remuneration.

  To benefit, three conditions must be met:

  • Not having been a French tax resident during the 5 years prior to taking up duties in France
  • Being recruited abroad or seconded to France by a foreign group company
  • Establishing French tax domicile from the date of taking up duties

  Since the 2024 reform, this regime applies until 31 December of the eighth year following arrival in France. A consultation prior to relocation is strongly recommended to confirm eligibility and correctly structure remuneration.

• + What is Exit Tax and when does it apply upon moving abroad?

  The Exit Tax (Article 167bis of the French Tax Code) applies to individuals who transfer their tax domicile outside France. It taxes unrealised capital gains on certain assets at the time of departure. It applies to taxpayers who have been French tax residents for at least 6 of the preceding 10 years and hold participations with a total value exceeding 800,000 euros.

  • Unrealised capital gains on shares in companies subject to corporate tax
  • Earn-out receivables (price supplement clauses)
  • Deferred capital gains arising from contribution-disposal transactions

  Upon departure to an EU Member State, payment is automatically deferred until the actual disposal of the securities. Maître Alexis Germe assists taxpayers planning an international move to anticipate the impact of Exit Tax and secure the required filings.

• + How can I regularise undeclared foreign bank accounts without facing criminal proceedings?

  Holding foreign bank accounts, life insurance contracts or trusts abroad is perfectly legal, provided they are declared annually. Failure to do so exposes you to administrative penalties and, in the most serious cases, to criminal prosecution for tax fraud.

  • Administrative fine: 1,500 euros per undeclared account (raised to 10,000 euros for accounts in a non-cooperative State)
  • Recovery of income generated, increased by 40% (bad faith) or 80% (characterised fraud)
  • Criminal prosecution in cases involving significant amounts or deliberate concealment

  Voluntary regularisation, properly conducted before any tax audit, generally allows reduced penalties and avoids criminal proceedings. Maître Alexis Germe has assisted numerous clients in regularising accounts held in Switzerland, Luxembourg or offshore jurisdictions.

• + Can I negotiate with the tax authority and obtain a reduction in penalties?

  Contrary to popular belief, the tax authority is not impervious to negotiation. Several legal mechanisms allow a reduction in the amounts claimed, provided they are used at the right time and with the right arguments.

  • Tax settlement (Article L247 of the Tax Procedure Book): before recovery, you can propose a settlement to obtain a partial reduction of penalties and surcharges
  • Hierarchical review: in the event of disagreement with the auditor, you can contact the Departmental Interlocutor, who has broader discretion to moderate
  • The Departmental Tax Commission (CDI): for disputes on factual questions, the CDI can issue a favourable advisory opinion
  • Staggered payment plan: if you acknowledge the tax debt, an instalment arrangement can be negotiated

  Maître Alexis Germe identifies the room for manoeuvre specific to each case and negotiates directly with the tax services to obtain the best possible outcome.

• + Is my company subject to transfer pricing obligations?

  Formal documentation obligations apply to companies exceeding 400 million euros in consolidated turnover or balance sheet total. Lighter obligations apply to companies between 150 and 400 million euros.

  But regardless of your company’s size, if it carries out transactions with related entities established abroad, the tax authority can challenge the prices during an accounting audit, based on Article 57 of the French Tax Code.

  A preventive analysis of intra-group flows is recommended as soon as your group operates in more than one country. Maître Alexis Germe assists groups in preparing their documentation and defending them during audits.

• + How much does a tax lawyer charge?

  Depending on the nature of the case, a tax lawyer may propose several fee arrangements:

  • Time-based fees, appropriate for complex cases requiring in-depth analysis
  • Fixed fees, for clearly defined assignments: tax audit, preparation of a return, representation before the tax courts
  • Contingency fees, in certain challenge or negotiation proceedings with the tax authority

  Maître Alexis Germe always acts following the signing of a clear and detailed fee agreement.

• + What is the difference between a tax lawyer and an accountant? Which should I choose?

  An accountant is a numbers professional. They maintain your books, prepare your annual accounts, file your routine tax returns and advise you on the financial management of your business.

  A tax lawyer is a lawyer specialising in tax law. They intervene on complex legal issues, disputes with the tax authority, and high-stakes wealth transactions. They are bound by absolute professional secrecy guaranteed by the Bar. In the event of a tax audit, reassessment, tax search or criminal proceedings, the involvement of a tax lawyer is indispensable, as only they can represent you in court and invoke legal professional privilege.

  In practice, the two professionals are complementary. Maître Alexis Germe regularly works in coordination with his clients’ accountants to provide coherent and effective tax defence at every stage of the case.