What is the tax prescription?

The prescription is a process which ends a right or a duty after acertain period of time. Under french tax law, time prescriptions vary.

The prescription of checking rights means that the tax authority cannot make adjustments, after the legal time limit has expired. This time limit is one of the taxpayer’s guarantees.

Tax arrears must also be paid within certain time limits.

Consequently, to be valid, the tax adjustments must be notified and recovered within specific delays. After the expiry date, the prescription benefits the taxpayer.

The taxpayer is also subject to act within certain time limits (among others in case of litigation recourse). Afer expiration of those delays, the prescritption benefits the tax authority and the taxpayer looses his right to appeal.

Several years may frequently separate the beginning of the tax audit and its definitive ending at the bar. Time is an essential and strategic element regarding the tax audit management which may benefit the taxpayer or the tax authority.