Odessa provides support to taxpayers during the various stages of discussions that can be initiated by the French tax authorities : explanation request, supporting documents inquiry, extended tax audit.

These demands are addressed with the greatest caution, as they should be whenever the French tax authorities use their audit powers. The firm draws both on technical skills to draft the best possible reply and on litigation experience to assess the issues implied by the demand itself and try to defuse a tax reassessment that may already be planned by the French tax inspector.

Odessa is available to any taxpayer willing to submit to critical review their tax returns and the tax they have paid in France in light of their personal facts and circumstances.

The firm may identify tax overpayments made by taxpayers because they were unaware that they could benefit from a favourable tax regime or because they have accepted a tax reassessment that was not justified. In such cases, Odessa and the client may agree on a mission to claim and recover the overpaid tax to the French Public Treasury.

in opposite cases, taxpayers who find out that they have not fully met their French tax obligations may be assisted in regularizing their situation, in such a way to minimize the risk of penalties. The firm has a significant expertise in the field of voluntary disclosure of foreign assets.

Odessa’s main area of practice is to analyze and challenge tax reassessments issued by the French tax authorities.

The points of focus are the following :

• did the French tax authorities comply with procedural safeguards granted to the taxpayer (statute of limitations, prior notice, etc.) ?

• is the tax reassessment based on accurate facts or can it be challenged by evidence showing otherwise ?

• did the French tax authorities make a correct and consistent interpretation of statutory and regulatory texts ? If so, are such rules consistent with the French Constitution and EU law ?

• Is the actual calculation of tax arrears and penalties correct ?

If, in spite of a reasonable case, the discussion with the French tax inspector does not lead to total relief or at least to a significant decrease, Odessa may initiate all administrative and legal recourses that may lead to a better outcome.

Cryptocurrency

Taxation has been a major worry for holders of Bitcoin and other crypto-assets, as the up and downs have left many in the difficult position of not knowing how to declare and how much tax (if any) is due on trades made on cryptocurrency exchanges.

The firm is renowned for its practice, which historically drove the French Supreme Court to annul a tax directive under which trading gains were always treated as active income. This 2018 ruling opened the way to the current private capital gains tax regime.

More generally, Odessa can offer the following support to taxyers involved in cryptocurrency :

• Analysing past operations and assessing non-compliance risks

• Assessing taxpayer’s eligibility to private capital gains tax regime rather that active income tax regimes (“BNC” or “BIC”)

• Carrying out cash out reporting obligations

• Dealing with the French tax authorities in case of inquiry

• Structuring future investissements

Non-residency and global mobility situations

Odessa provides support to private clients living abroad in carrying out their French tax obligations regarding real estate (wealth tax, rental income, 3 % tax returns) or income and capital gains linked to a prior French tax residency period (stock options and other equity incentives, defferred capital gains tax and exit tax).

The firm has a renowned experience in challenging the liability of non French residents to the specific 14 % contribution levied on supplementary (“top hat”) pension plans (CSS art. L. 137-11-1) and can claim its repayment to the social security authorities (URSSAF).

The firm also provides legal defense to taxpayers who are engaged in litigation regarding the determination of their country of tax residency.

More generally, Odessa provides advice to taxpayers who plan to move in or out of France regarding how the change of tax domicile will affect the taxation of their income and assets and their estate planning (cross-border gift and inheritance).

The firm also deals with international assignments (implementation of specific French tax regimes applicable to “impatriates” or expatriates as a tax incentive) and may assist both companies as a whole or particular executives.

All advice can be delivered in fluent English and whenever required, the firm is also able to consult a network of national jurists to cover non-French taxation rules.