The examen de conformité fiscale (ECF) was created as part of the French tax authorities’ “relationship of trust” approach. Any business may use it, whatever its size, legal form or tax regime.
The ten points reviewed
- Compliance of the accounting entries file (FEC)
- Accounting quality of the FEC
- Cash register software
- Document archiving
- Tax regime applied
- Depreciation rules
- Deductibility of provisions
- Deductibility of accrued expenses
- Deductibility of exceptional expenses
- VAT chargeability rules
Effects of the examination
If a later tax audit challenges one of the points validated by the examination, no penalties or late-payment interest apply to that point, provided the company acted in good faith.
How it works
Engagement letter, work on the ten points, report issued to the company, and a mention in the corporate tax return. We can perform the ECF for companies whose accounts we do not keep, after checking the conditions of our engagement. Contact us
Frequently asked questions
Is the ECF compulsory?
No. It is an optional engagement that the company chooses to request.
Who can carry out an ECF?
A chartered accountant, a statutory auditor or an approved management association, under the conditions set by the regulations.
Can our usual accountant perform the ECF?
Conditions apply to preserve the independence of the review. We check them before accepting any engagement.
Does an ECF prevent a tax audit?
No. It does not prevent an audit, but it protects the company against penalties and late-payment interest on the points validated, provided it acted in good faith.
When should the ECF be requested?
The engagement letter must be signed in time to carry out the work before the corporate tax return is filed. Ask us early in the financial year.