Social taxes - Social taxes audit - Audit process

This chapter is not exhaustive and is limited to broadly outline the tax consequences of the main events occurring when doing business in France. It does not constitute a tax advice or a client - attorney relationship. Materials are not suitable for tax analysis. Visitors are invited to consult a tax lawyer before taking any decision.  
 

The audits are performed on the basis of the information provided by the employer and other public services. This type of audit is performed at the URSSAF offices and the employer might not be aware of the audit.
The audit can also be performed at the employer's premises. This type of audit is an in-depth audit and requires formal obligations from the URSSAF. Before starting the audit at the employer's premises, the URSSAF sends a formal notice of audit to the employer by registered mail.

The absence of notice renders null and void the audit procedure. In case of moonlighting, the sending of a notice is not required. The inspectors in charge of the audit have the right to access the last 5 years pay slips and other documents which might be of any help for their audit. They are authorized to interview the employees in the employer's premises. Should the accounting be not precise enough to assess the amount of the social taxes due, the inspector is allowed to calculate its taxes summarily. At the end of the audit, the employer receives a formal letter where the inspector has summarized his findings.

This letter indicates the audited period, the date where the audit has been performed, the communicated information. This letter indicates the amount and the type of the envisaged reassessments if any. If there is no reassessment, this position binds the URSSAF for future audits except if the URSSAF notifies a new position. The auditor must inform the employer that he can justify his position within a 30-day period after reception of the formal letter.
At the end of the 30-day period, the URSSAF will send a notice to pay to the employer by registered mail and will be entitled to collect the taxes.