The accounting records file (FEC) : a mandatory file during an audit

During an audit of a company’s accounts, the company must submit the accounting records file (FEC) to the French tax authorities. This obligation applies since January 1, 2014. This file lists all the journal entries of a company, in chronological order. The tax administration imposes a standardized format and content, the details of which are indicated in the BOFiP. The FEC allows the auditor to carry out consistency checks between accounting documents and tax declarations. Moreover, the computer format allows a significant time saving for the tax administration. The latter can thus perform remote verifications, which reduces his time of presence within the company.

Who is required to provide the accounting records file ?

The taxpayers concerned are the taxpayers who :

• Are notified of an audit by the French tax authorities
• Keep their financial accounts using computerized systems
• Are subject to corporate income tax (or personal income tax if the French legal form of the company is a SNC)

Note that these obligations do not apply to micro-entrepreneurs and real estate companies whose partners are individuals (SCI).

What are the risks if the FEC is not provided ?

The company must provide its accounting records file no later than 15 days after receiving the audit notification. Sanctions can be very heavy if the company does not deliver it on time, or if the FEC is not compliant. Indeed, the company will be liable to a fine of at least € 5,000, or an increase of 10% of the fees charged to the company. The French tax administration may even go as far as applying an automatic imposition procedure in the event of opposition to the audit.

Given the significant risks involved, we advise you to obtain your FEC quickly to secure yourself. For this, PHAN Experts can help you by taking charge of your financial accounting requirements, and by generating your FEC.