Proportionality: The French Constitutional Council holds that the proportional fine introduced in Article 1736 IV bis of the Tax Code is unconstitutional because the fine is disproportionate as regards to the seriousness of the aimed offense (breach of the self-assessment obligation) (Mme Michelle Theresa B.)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In its pursuit of tax evasion, the legislator pays particular attention to sanctioning breaches of the reporting obligations to which taxpayers are subject. In this case, the legislator, by the law of 29 July 2011, introduced a declaratory obligation applied to any administrator of a trust if the administrator, settlor or at least one of the beneficiaries is domiciled for tax purposes in France or if the trust includes at least one asset governed by French law. The 2011 law provides for a sanction in case of failure to comply with this obligation in the form of two different fines. Firstly, a lump sum fine set at 10,000 euros, and secondly a proportional