French Tax Compliance Review (ECF)

The Tax Compliance Review ECF (“Examen de Conformité Fiscale”) is a voluntary tax audit introduced by the French ESSOC law (‘Law for a State serving a society based on trust’). It involves entrusting a chartered accountant or authorised professional with the analysis of 10 key points from your accounting and tax records.

The aim of this assignment is to secure the company’s tax returns and limit the risk of adjustments. It results in a standardised report, which is sent to the French tax authorities at the same time as the tax return.

Whether we are already your accounting firm or not, Coffra group is authorised to carry out the ECF mission for your company. With our international experience and specialisation in corporate taxation, we guarantee a rigorous, transparent and secure approach.

Our strengths:

• In-depth knowledge of French standards
• Multidisciplinary team: tax specialists, lawyers, accountants
• Expertise in cross-border issues
• Optimisation of the assignment budget thanks to our knowledge of your files

Objective:

Reduce your company’s tax risk and demonstrate your good faith in the event of an audit.

The concrete benefits:

• Limit the likelihood of an in-depth tax audit
• Avoid penalties and interest on arrears in the event of an adjustment on a validated point
• Provide proof of rigorous accounting to the authorities
• Enhance your tax compliance with partners or investors
• Secure the responsibilities of the director

ECF covers the most sensitive aspects of tax audits. Here are the 10 mandatory points required by regulations:

1. Accounting Records File (FEC, “Fichier des Écritures Comptables“): existence and compliance
2. Quality and reliability of the FEC
3. Certified cash register software (if applicable)
4. Document retention method
5. Tax compliance (corporate income tax and VAT)
6. Depreciation rules and tax treatment
7. Tax treatment of provisions
8. Deferred liabilities and their taxation
9. Exceptional expenses: classification and deductibility
10. Correct VAT liability

Each point is analysed using a predefined method, ensuring consistency and objectivity in the audit.

Coffra group strictly complies with the framework set by the DGFIP (Directorate General of Public Finances):

• Standardised report to be attached to the income statement
• Breakdown of costs per item checked
• Partial reimbursement of fees in the event of an adjustment relating to an item that was wrongly validated

Our duty to advise means we offer this service even to companies already working with a different firm.

For the 2024 financial year, the deadline for completing an ECF is 31 October 2025 (before the company’s results are declared).

The earlier the mission is launched, the more time there is to anticipate any necessary adjustments before the accounts are closed.

The ECF is intended for all companies subject to a real tax regime, regardless of their size, sector or tax history.

The assignment is particularly useful in the following cases:

• Newly created companies
• Rapid growth or change of tax regime
• Cross-border teleworking or internationalisation
• Legal or asset reorganisation