To declare or not to declare

This case study explains why declaring is always the answer.

The situation. Jane*, a British citizen who recently relocated to France, did not inform the French tax authorities (DGFIP) about her UK pension accounts, including a SIPP (Self-Invested Personal Pension) and QROPS (Qualifying Recognised Overseas Pension Scheme). Under French tax law, individuals must report all foreign financial accounts annually using Form 3916.

The outcome. Jane thought President Macron’s “droit à l’erreur” (right to make mistakes) would shield her from penalties, but it doesn’t apply to undisclosed foreign accounts. She therefore faced €1,500 fines for each undeclared account, charged per year of non-compliance.

Key takeaway. Ensure you stay penalty free by following this compliance checklist: 

• File accurately. Report all foreign accounts or pensions capable of holding or transferring assets via Form 3916 (even if dormant or no withdrawals are made).
• Consult an expert. Ask a cross-border tax expert to clarify obligations and ensure proper reporting, particularly for pensions with complex legal structures.
• Correct errors. If accounts have not been declared, act quickly to amend tax filings and reduce penalties.

The “right to be wrong” isn’t an option. Let us help you find financial peace of mind.

*Names have been changed for confidentiality.