2018 Income Tax Vintage, increased recovery time

Blog of Bornhauser lawyers

In principle, the period for resumption of ordinary tax administration expires at the end of the third year following that in respect of which the tax is due. 

By way of derogation from the provisions of the first paragraph of article L. 169 of the LPF, section 2 of L of II of article 60 of law n ° 2016-1917 of 29 December 2016 on finance for 2017 provided for an extension of  the deadline from three to four years , i.e. one more year for  income tax for 2018  after the introduction of the withholding tax from January 1, 2019.

The control of the Tax Credit for Modernization of Tax Recovery (CIMR), however reserved for non-exceptional income, therefore allows the administration to defer its action  until December 31, 2022  and not December 31, 2021. 

Therefore, if the uncorking for fiscal reasons of grands crus at the end of this calendar year was expected in December 2021 for the vintage of IR 2018, we will have to wait 12 more months!

Indeed, this extension of the recovery period for the taxation of income for 2018 targets  all income  received and  deductible charges  for the year 2018 (BOI-IR-PAS-50-20-50). 

In addition, it is not limited to only non-exceptional income located in the scope of the withholding tax which gives rise to the benefit of the CIMR but also concerns income outside the scope of the levy such as income from movable capital and capital gains or tax credits or reductions.

All the elements useful for the establishment of the income tax are thus covered, we can even anticipate the control of a real estate gain which must be carried forward there for the calculation, if necessary, of the Contribution. Exceptional on High Income. 

The field of investigation is therefore very wide and after the period of COVID suspension impacting the 2017 vintage, the recovery period of which expired for the administration on June 14, i.e. 6 more months, the administration time will recover, strongly fortunately, its tranquility from January 1, 2023 after expiry of the recovery deadlines for the 2018 and 2019 vintages. 

Beware of overflow and overcrowding of procedures! 

cdubos@bornhauser-avocats.fr

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