The role of a FEC in the case of a tax audit
The FEC (fichier des écritures comptables) file is a mandatory accounting document for the liberal professions, just like the general ledger and the journal book. It can be requested in case of a tax audit.
The file contains all the entries in the accounting journal that correspond to the fiscal years referred to in audit notice. These are debit/card accounting lines with fifteen to twenty associated information such as the entry date or validation date.
What is its purpose?
The FEC is requested when you are subject to a tax audit. From the beginning of the audit, you must provide copies of all accounting records for the audited years. The FEC must be accompanied by a descriptive file containing technical specifications and details of how all data within the file were specialised when they were filled in. The auditor will make sure that the accounting documents are in line with tax declarations made previously.
If you fail to provide all the records required, there is a 5 000 € fine for tax fraud that you will have to pay. The fine will also apply if your FEC does not comply with the standards. In practice, the administration will make you a rectification proposal and will give you a period of time to resolve the situation. When a rectification is made and exceeds 5 000 €, the fine increases by 10 % of the fees charged to the liberal profession. These penalties are applicable to each year under control.
Another reason for non-compliance could be the use software companies to generate FEC files. The French tax administration could refuse to certify FEC solutions even tough they may be SAP certified.
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