France Corruption Report

There is a low to moderate corruption risk for businesses dealing with the French security sector. The police are well-trained and the levels of integrity within the institution are fairly high (EUACR 2014). Businesses consider the police reliable in enforcing law and order (GCR 2017-2018). Around half of respondents from a survey perceive instances of bribery and abuse of office within the police to be widespread (European Commission, Feb. 2014). The government has effective control over the police force and adequate mechanisms exist to punish abuse and corruption (ICS 2017). Impunity is not widespread (ICS 2017). The Inspectorate General of National Police (IGPN) actively investigates and prosecutes allegations of police corruption; citizens can report abuses, on the condition that they provide their identity, on the website of the Ministry of Interior (HRR 2016). Citizens reported abuses 2,958 times in 2015 (HRR 2016).

Michel Neyret, a high-profile member of the police in Lyon, was sentenced to 30 months in prison by Paris’ Criminal Court in 2016 (BFMTV, Jul. 2016). Neyret was convicted on corruption charges; notably accepting bribes from a former police informant in return for lavish gifts and bribes amounting to EUR tens of thousands (France24, May 2016).

Businesses investing in France face low to moderate corruption risk when dealing with public services. Irregular payments are rare (GCR 2015-2016). Notwithstanding, almost half of companies report that they would experience minor delays upon refusal of paying facilitation payments (Control Risks 2015-2016). Half of surveyed businesses report bribery and the use of connections often being the easiest way to obtain a public service (European Commission, Feb. 2014). Around a third of citizens perceive inspectors and officials dealing with licensing to be involved in bribery and abuse of office, yet none report to have paid a bribe to obtain a public service (European Commission, Feb. 2014). In August 2017, the National Assembly adopted a bill abolishing constituency funds for lawmakers, which are said to have encouraged patronage in the relationship between lawmakers and their constituents (Reuters, Aug. 2017).

Companies believe that the burden of government regulations and inefficient bureaucracy negatively affects levels of competitiveness in France (GCR 2017-2018). Companies are able to manage administrative tasks online, such as establishing, selling or taking over a company through the one-stop-shop at Guichet-entreprises.fr. Starting a business in France is less time-consuming and less costly on average compared to other OECD countries (DB 2017).

Companies dealing with France’s land administration face low to moderate corruption risks. Property rights are perceived by businesses as well protected (GCR 2017-2018). Almost half of surveyed citizens perceive bribery and corruption to be widespread among officials issuing building permits, yet none report having paid a bribe (European Commission, Feb. 2014). Expropriation is permitted under French law for public purposes, provided it is accompanied by a just and prompt payment (ICS 2017). Half of real estate agencies that participated in a survey indicate that someone has tried to bribe them at some point in their career, suggesting prevalent corruption in the sector (Agilebuyer 2015). Allegations of bribery and other corruption activities by France Pierre, a real estate group, have entangled several mayors and other public officials, who reportedly were bribed to approve several housing projects (Le Parisien, Jan. 2017).

Registering property in France is on average more costly and almost three times as time-consuming compared to other OECD countries (DB 2017). France made transferring property more expensive by increasing the property transfer tax in 2016 (DB 2017).

There is a low to moderate risk of corruption in France’s tax administration. Companies complain that tax regulations and tax rates are a major obstacle to doing business (GCR 2017-2018; European Commission, Feb. 2014). Nonetheless, irregular payments and bribes when making tax payments are perceived to be rare (GCR 2015-2016). Almost half of surveyed businesses perceive tax fraud in France to be widespread (European Commission, Feb. 2014). In effect, tax evasion is a problem in France; French authorities are investigating over four hundred individuals after revelations stemming from the Panama Papers (RFI, Apr. 2017).

France recently decreased the costs required to pay taxes by introducing a credit against corporate tax and reducing labor tax rates (DB 2016). Companies pay taxes eight times a year which is slightly below the OECD high income average (DB 2017).