Tax authorities to crack down on recalcitrant large property owners

Taxpayers' misunderstanding, lack of information, overwhelmed services: the Court of Auditors criticized the launch of the new "Manage my real estate" platform in 2023.

More than a million taxpayers had been wrongly taxed, forcing the State to rebate 1,3 billion euros: a scourge for already drained public finances.

This new reporting obligation resulted from the abolition of the housing tax in the same year.

Owners had to provide the administration with the names, first names, dates and places of birth of the occupants in order to allow the tax authorities to identify among 71 million premises in France those which should remain taxed, in particular under the tax on second homes, or that on vacant dwellings.

But the state tool, developed over five years at a cost of 56,4 million euros, had caused considerable malfunctions, highlighted by the Sages of Rue Cambon, and by several trade union organizations which denounced the consequences for services on the ground.

Three campaigns later, the tax authorities want to make amends.

The platform is now integrated into the income tax return, the campaign for which began on April 11 and will end no later than June 5. Occupant declarations will continue until "the end of June," according to the Directorate General of Public Finances (DGFiP).

But reporting gaps remain, less so among "small" owners than among "large" owners (of more than 200 properties).

The former, who own "three or four properties, sometimes a few more," declared 82% of their occupational situations in 2023, and 88% the following year, specifies the head of the tax management department at the DGFiP, Olivier Touvenin.

To date, Bercy has recorded 90% of declarations for the current campaign, confirms François Rollo, one of the tax officials interviewed by AFP.

"Black spot"

Social landlords, local authorities, developers, banks and SCI owners - the DGFiP lists some 3.000 major landlords, of which only "a few hundred" represent the bulk of the real estate portfolio (around 70%).

The failure to file declarations by this category of owners was one of the "weak points" of the 2023 campaign, Olivier Touvenin acknowledges, with only a 45% declaration rate from occupants, then 78% in 2024.

A figure that the administration hopes will be slightly higher in 2025.

The administration assures that it has taken numerous measures to better support them. But a "black spot" persists on the side of local authorities, some of which are among the largest donors.

And in 2024, only 50% of communities had declared their occupancy situations, reports Olivier Touvenin.

A situation which can be explained, according to him, by a lack of knowledge of their own assets, or by difficulties in identifying the occupants of premises for which they have delegated responsibility for management, for example a fire station.

This year, local authorities had the opportunity to delegate the task of identifying occupants to the actual managers of the premises, he emphasizes.

Fine of 150 euros

This identification problem is less present for social landlords who directly manage premises and with whom "a longer tradition of file exchange" exists, notes Grégory Berthelot, deputy director of tax management at the DGFiP.

While small property owners will be spared financial penalties in 2025, large property owners could be fined 150 euros per property.

"We have identified a certain number who have an obligation but who report anything and everything to us, in any way, or even nothing at all," assures Olivier Touvenin.

Some have difficulty identifying their occupants, but others "don't make any particular effort to know them," he believes.

Ultimately, before the threat of a financial penalty, the failure to report was primarily detrimental to the tenant who was potentially wrongly taxed and who had to regularize his situation.

Apart from the fine, "the owner does not necessarily have an interest in acting," concludes Olivier Touvenin.

Illustrative image of the article via Depositphotos.com.