### Achievements in Combating Tax, Customs, and Social Fraud in 2022

On February 23, 2023, Bruno Le Maire, the French Minister of Economy, Finance, and Industrial and Digital Sovereignty, and Gabriel Attal, the Minister Delegate in charge of Public Accounts, announced the outstanding achievements in combating tax, customs, and social fraud in 2022. They expressed their gratitude to the General Directorate of Public Finances, the General Directorate of Customs, Tracfin, URSSAF, and their staff for their efforts.

#### 1. Achievements in Combating Tax Fraud

In 2022, the amount recovered following tax audits reached a record high of €14.6 billion, an 8.2% increase from 2021, adding €1.2 billion. These results are due to reforms implemented since 2017, which not only restored pre-pandemic levels but also surpassed the performance of 2019.

- **Tax Audits**: In 2022, tax audits uncovered €14.6 billion in tax evasion, with €8.8 billion from on-site audits, an increase of €1 billion (+13%) from 2021, and €5.8 billion from document audits, an increase of €170 million (+3%) from 2021.

- **Tax Collection**: The state collected €10.6 billion in taxes through tax audits, matching the amount from 2021. Collections from corporate tax and social wage tax increased by 30% compared to 2021, and inheritance tax collections increased by 23%.

- **Data Mining**: 52% of tax audits were based on data mining, which led to the recovery of €2 billion in taxes and penalties in 2022, a 67% increase from 2021.

- **Criminal Prosecutions**: In 2022, the General Directorate of Public Finances (DGFIP) initiated 1,770 criminal proceedings related to tax fraud, an increase of 153 cases from 2021. Among these, 48 cases involved criminal charges for tax fraud, a 7% increase from 2021.

#### 2. Achievements in Combating Customs Fraud

In 2022, Customs achieved historic results in several areas, particularly in combating counterfeit goods and tobacco smuggling.

- **Drug Smuggling**: French Customs seized 104.08 tons of drugs in 2022, with an estimated illegal sale value of over €1.041 billion, representing 80% of the national seizures. This included 17.8 tons of cocaine.

- **Tobacco Smuggling**: In 2022, Customs seized 649.1 tons of tobacco and cigarettes, a 59.2% increase from 2021 and a 125% increase over two years. A total of 16,986 inspections were conducted, leading to the dismantling of several illegal cigarette factories.

- **Counterfeit Goods**: In 2022, Customs seized 11.53 million counterfeit items, a 27% increase from 2021. This included 5.8 million toys and games, 778,000 personal care products, 479,000 clothing and accessories, and 374,000 beverages and food items.

#### 3. Tracfin's Role in Combating Fraud

In 2022, Tracfin strengthened its capabilities in combating tax, customs, and social fraud, which accounted for 30% of its activities. Tracfin made 884 reports in 2022, involving €1.5 billion in financial risks, with 458 reports to tax authorities and 129 to judicial authorities.

- **Suspicious Activity Reports**: The number of suspicious activity reports processed by Tracfin increased from fewer than 70,000 in 2017 to 167,000 in 2022, a 138.6% increase.

- **Detection of Emerging Fraud**: Through continuous analysis of suspicious reports, Tracfin detected fraud related to crypto-assets, particularly undeclared or underestimated profits from non-fungible tokens (NFTs) and fraud related to national aid programs.

#### 4. Achievements in Combating Social Security Fraud

Since 2017, significant progress has been made in combating social security fraud, particularly in health insurance and CAF benefit payments.

- **URSSAF Network**: In 2022, the URSSAF network recovered €788 million, doubling the amount from 2013 (€320 million). Between 2018 and 2022, a total of €3.53 billion was recovered, exceeding the initial target of €3.38 billion.

- **CAF Network**: In 2022, the CAF network detected 49,000 cases of fraud, amounting to €351 million in losses, a 21% increase from 2017. In 2022, the CAF network imposed penalties in 23,000 cases, totaling €23 million, a 36% increase from 2017.

- **CNAV Network**: In 2022, the CNAV network prevented €155 million in improper payments, an increase of €2 million from 2021. In 2022, the CNAV network conducted inspections of 360 pharmacies, identifying fraud in 65 of them, with estimated losses of €58 million.

### Conclusion

In 2022, France achieved significant success in combating tax, customs, and social fraud, thanks to enhanced inspections, data mining, and international cooperation. In the future, France will continue to strengthen these measures to ensure the fairness and effectiveness of public finances.