France has passed anti-tax and major economic and financial crime bill that is expected to generate additional revenues of 2 billion (US$2.6 billion) to the 2014 budget.
The French National Assembly has passed the bill by 358 votes to 198, reported Tax-News.
The bill is intended to crack whip on tax evaders as well as give more powers to the tax and customs administrations, police and the judiciary. It also aims to enhance coordination between the financial and judicial administrations, and increase transparency.
The bill proposes seven-year imprisonment and 2 million fine among various sanctions to be imposed in the cases of aggravated tax evasion.
It strengthens the tax investigative agency BNRDF by authorising it to use special investigative techniques in "aggravating circumstances".
The bill also has provision to consider reduction of punishment to repentant tax evaders who help the administration identify other perpetrators.
The fine for non-declaration of trust has been increased to 12.5% from 5%.
The French Government plans to blacklist countries that are not cooperative in sharing information on French tax evaders who invest in those countries.
Quoting France Finance Minister Pierre Moscovici and Budget Minister Bernard Cazeneuve Tax-News has reported that the legislation constitutes a new stage in the Government’s determined fight against tax evasion and the recovery of the public finances.