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neighbours to find a suitable device that allows her to fight more effectively against
fraud affecting the public finances, while preserving its social solidarity system.

The National Delegation to the fight against fraud (DNLF) was created in this context
on April 18, 2008 with the mission of coordinating the controls of public
administrations and public bodies responsible, each in its field, of the fight against
tax- and social frauds.

Seven years later, DNLF and its partners have contributed to the implementation of
mechanisms for collaboration and cooperation between public authorities to fight
against fraud phenomenon affecting tax revenues and social spending.

Income reduction: fiscal and social issues

One of the first areas in which social and fiscal frauds are closely linked is the
provision of social benefits. In France, most of social benefits are paid by the CAF
Network (Family Allowance Fund) for Family (€ 45Md), housing (€ 17Md) and
solidarity (€ 19Md). All of these aids represent an annual amount of more than € 80
billion. These various benefits are paid means-tested. Depending on the recipients'
income, social aids can be reduced.

To obtain their aids, recipients have to justify their income, just by providing their
income tax assessment, and some other documents about their family or housing
situation. This mechanism could be circumvented quite easily until recently by
undervaluing taxable income. Insufficient income allowed on one hand to reduce
the tax burden, and to acquire undue social benefits on the other hand. CNAF
(National Family Allowance) estimated the amount of the fraud around € 1bn a year
and the fraud discovered in 2014 amounted to almost € 210 million and spread over
nearly 33,000 cases.

To fight against this kind of fraud, DNLF has favoured IT exchanges between the tax
authorities and the social institutions so as to get direct access to tax authorities'
data. In this way the social institutions might know the declared income at any time,
and eventually the new assessment in case of a DGFIP audit. This direct access to tax
information also helps to fight against the falsification of administrative documents
by people who change the information on their tax assessment so as to get benefit
from specific allocations.

This last point is more and more important for tax administration and social
institutions that have to face with identity frauds by people who try to obtain
fraudulent refunds or benefits. The cross checking between tax and social data

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