Be careful if you have carried out transformations to your home without declaring them for taxes! Tax services use powerful digital tools to identify oversights and the penalties are very heavy.
Start-ups and multinationals are not the only ones relying on IT to increase their efficiency. For several years, tax services have been experimenting with the use of digital tools to strengthen the hunt for various frauds, and in particular that of undeclared constructions. And since 2022, the tax authorities have acquired a new weapon: artificial intelligence.
First tested in nine departments, the method consists of submitting aerial photos from the National Geographic Institute (IGN) to a visual recognition algorithm, capable of spotting and identifying constructions by their shape and color. The structures thus discovered are then compared with the plans recorded in the land register in order to detect those which are not declared.
And the results are there: in 2022, with only nine departments concerned, 20,000 undeclared swimming pools have been identified. And in 2023, after the extension of the system throughout the country, no less than 140,000 illegal swimming pools have been identified, for a tax adjustment of around 40 million euros in property tax!
Building on this successful experience, and after focusing on swimming pools, the tax authorities will therefore extend their field of research to other types of structures in 2024. Garden and terrace sheds, verandas, garages and generally all construction extensions are thus in the sights of the tax services. Only converted attics should go under the radar for the moment, because they are more difficult to spot on aerial photos (but for how much longer?).
So, if you own a property including undeclared developments or extensions, whether due to you or that of the former owner, it is high time to regularize the situation. Because the sanctions in the event of detection of an undeclared construction can be particularly heavy. First of all, there is the risk of having to bring the construction into compliance with local regulations, or even demolish it entirely, at your expense of course.
Then, undeclared construction exposes you to a fine of between €1,200 and €6,000 per square meter. Suffice it to say that even a small veranda can quickly cost you a lot of money. Finally, an extension of your home not declared for taxes can lead to tax sanctions, with an adjustment of your property tax for the years to come, but above all a regularization which can go back several years and even be subject to ‘an increase!
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