France and Taxes

[Adelino]

I've been living in France a while now but bearing the end of my secondment so looking to move into the French system.

I live fairly rurally and it is common knowledge here that the majority of businesses pay their employees part in cash and part officially in order to avoid the high social security charges. Businesses are advised to do this by their accountants.

I was just wondering if this is the case all across France or just in the sticks.

I read on an expat site that if you declare your earnings as a micro entrepreneur the authorities tax you on 25% more than you have declared because they assume you have fiddled the books... So you kind of have to.

I like to be honest but is that feasible in a country which seems to run on a dishonest system. Any one else with experience of this and how best to approach it?

Hi Adelino,

I've heard the same, I'm just getting my business organised to register and this worries me too! I've heard that a lot of smaller businesses here pay minimum and add some cash on the noir because of this.

I have decided to play exactly by the rules for now and price things at the upper end and see what happens. I want to apply for citizenship eventually so I want a good track record. I've also been to lots of free seminars at the local (I'm in the sticks too, so it's an hour's train ride local!) Chambre de Commerce which have been useful, have you registered with them? They were far more up to date than a lot of the expat sites (hardly surprising as this is their job) and very welcoming, if a bit slow to send out further requested information - but that's normal! I'm not sure that I see it as a dishonest system, rather more realistic!

Never heard this where I live, we've had a few companies in various forms and several accountants, and have also never been advised that.