As the Cour des comptes (French Court of Audit) seeks to step up audits of the IFI (French real estate wealth tax), the property valuer is emerging as an essential player for taxpayers wishing to avoid tax reassessments.
In a recent report, the Cour des comptes stresses the need for the tax authorities to intensify their IFI audits, relying in particular on artificial intelligence. Since its introduction in 2018, the IFI has replaced the solidarity wealth tax and focuses exclusively on real estate assets.
The First President of the Cour des comptes points out that, although the IFI is collected efficiently, it is imperative to strengthen audits in order to identify and prevent tax fraud. In this context, the role of the property valuer becomes crucial: by providing precise, documented valuations of real estate holdings, the valuer helps taxpayers to submit accurate and complete returns, reducing the risk of reassessment.
In 2022, audits covered fewer than 2% of IFI taxpayers, but recovered €100 million. This low proportion of audits underlines the importance of accurate returns in order to avoid penalties.
The report highlights the challenges posed by property held through real estate investment companies (SCIs), where the expertise of a professional is even more decisive in correctly valuing these complex holdings.
With the expected increase in IFI revenue and the growing integration of artificial intelligence into audit processes, involving a property valuer in the return process appears not only as a recommended practice but as an essential one: it gives taxpayers the security of a precise and reliable valuation of their assets.
Since its introduction in 2018, the IFI has replaced the solidarity wealth tax and focuses exclusively on real estate assets.
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