8 billion euros. This is the annual amount of hidden labor fraud, estimated by Urssaf. This “black job” consists in not declaring one’s own activity, or in declaring only a part of it, or in declaring as self-employed people who carry out an activity that falls within the scope of work for someone else.
A practice against which the Government wants to intensify the fight. Undeclared work, which allows companies not to contribute and customers to save VAT, means a loss of resources for Social Security and public finances but also a loss of rights for workers. It is also a question of fairness and competitiveness between companies, between those that respect the rule and those that do not.
In its annual report published by FranceInfo, Urssaf claims to have recovered 788 million euros in 2022, or around 10% of the estimated fraud amount. Of these approximately 800 million euros, undeclared amounts represent 544 million and sanctions and surcharges 244 million. In the end, last year more than 5,300 companies and self-employed workers were reorganized for an average amount of 147,000 euros.
From 300 million to 800 million euros in 10 years
While the number of adjustments is stable for a year, it has increased significantly compared to previous years.
Since 2018, the total amount of the adjustments amounts to 3,530 million euros, more than the objective that the Government had set for Urssaf for the period 2018-2022 (3,380 million euros).
The objective of the collecting body is now to reach one billion euros in annual collection.
To achieve this, the Urssaf will have more resources. Gabriel Attal, Minister of Public Accounts, has promised the creation of 240 inspection posts that will be added to the current 340 dedicated to the fight against illegal work.
The organization is also increasingly using technologies such as AI to better guide companies to audit. They allow cross references from different databases to raise suspicions of irregularities.
The sectors most affected by undeclared work are construction, hotels and restaurants, transport and security and concierge. As for private entrepreneurs, Urssaf indicates that the tax advantages implemented in recent years have allowed fraud to be limited.
Source: BFM TV
