Fraud to social security contributions: the State should toughen the controls, said the Court of auditors

The Wise men criticise the lack of firmness of the State in tracking down the fraud to the social security contributions. Between 6 and 25 billion euros are lost each year.

four years ago already, the Court of auditors had drawn up more or less the same findings and made similar recommendations. Four years ago already, the Court of auditors was claiming in its annual report a strengthening of controls in respect of fraud to the social security contributions. In total, these contributions represented € 400 billion in 2015 and participate for 61.4% of the financing of social protection. But, as noted, once again, the institution, the mechanical control of fraud are insufficient. Result: the State loses money.

"The organized fraud is a priority in view of the financial implications a major it represents and concerns such as fair competition between economic operators, the guarantee of the rights of employees and the acceptance of the social levy", assures the authors of the report in the preamble. Because these deficiencies have a real cost: between and 6 and 25 billion euros would be lost, according to different studies. "The activity of control is a form of flagging a concern (...) in its overall results (and) in its methods and its organization, not sufficiently modernised" , bombard the Wise.

The irs has more resources

The arsenal is insufficient. Investigations to identify illegal work, or the accounting controls, of a plate carried out by the Urssaf from businesses are in sharp decline compared to previous years (- 6% compared to 2013, to the Urssaf and - 24% for illegal work). The Court recommends to set "aspirational goals" to the agents. But it is necessary to improve and modernise their working conditions. "While the inter-administrative represents a major route to improved efficiency, it has not yet been systematic in nature", regret that the facilitators, who also advocate the establishment of a dedicated database procedures against the illegal work.

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The teams have means too small, or even non-existent in some cases, denounces the Court of auditors. The fraud of private individual employers or users of collaborative platforms is almost impossible to meet, and in need of means. The report compares the possibilities of the tax services and social services to show that the former are much better equipped. "The social organizations do not, unlike the services of the general directorate of public finance, of the automatic transmission by the platforms of the data relating to the revenues of the collaborative economy.", says the text, which calls for "closer, whenever necessary, the legal means available to the officials responsible for the control and collection of social contributions from those available to the tax authorities".

The State is a bad payer of contributions

The text also notes the lack of control of the contributions of the independent, in particular because of the technical difficulties encountered by the RSI. The Court feared that the transformation of the ROI in the social Security self-employed persons, in force since January 1, 2018, will lead to new blockages.

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Finally, the report does not bother to tap on the specific practices of the State employer, when employees are hired in an exceptional way. Example: the department of Justice, which sometimes has recourse to legal experts, is slow to pay its dues. And the word soon is an understatement. Between 2000 and 2016, he is set to no. In the fall, the contributions due for the year 2017 had, according to the text, still not been paid! For the Court, the control of the State is "abnormally failed" and shows an alarming rate of 0.03%... like charity, control of well ordered begins with oneself.