Hospitality sector tops list of French companies with the largest tax gaps
France's Ministry of Economy and Finance found that cafés, hotels and restaurants have the biggest shortfall between corporate tax owed and paid.
A recent study by the Ministry of Economy and Finance analysed tax inspections carried out from 2015 to 2019 to identify sectors with the greatest fiscal discrepancies. The findings reveal that cafés, hotels and restaurants lead the list, representing the most significant shortfall in corporate tax revenue. Statisticians calculated that, on average, about 40 euros of tax due for every 100 euros reported are not collected.
The ministry attributes this gap to a mix of simple mistakes and intentional fraud, whether voluntary or not. The report underscores the substantial impact of these losses on the state’s finances and highlights the need for tighter compliance in the hospitality sector.
Why it matters
Large tax gaps in a major industry reduce government revenue and signal potential widespread non-compliance.
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