Blog of AlterTax, law firm
Welcome to our tax blog, an invaluable resource for anyone seeking to navigate the complex and ever-changing world of taxation.
Whether you’re a seasoned finance professional, an entrepreneur managing the tax realities of your business, or simply an individual looking to optimize your tax situation, our blog offers valuable insights, practical advice and in-depth analysis.
Home visits based on mere suspicion of tax fraud
In two rulings handed down on February 15, 2023 (Cass. com., February 15, 2023, no. 20-20.599 and Cass. com., February 15, 2023, no. 20-20.600), the Commercial Chamber of the French Supreme Court confirms that the tax authorities can initiate home visits against a taxpayer on the basis of mere suspicions of tax fraud.
What is the 3% annual contribution on buildings?
Legal entities owning real estate in France are liable for a 3% tax on the value of this real estate. This 3% tax on the market value of real estate was introduced by the 1983 Finance Act, with the aim of ensuring the visibility of chains of real estate ownership by French and foreign entities; making it possible to obtain the identity of associates and thus verify the correct application of the wealth tax (ISF), now replaced by the real estate wealth tax (IFI).
Tax consolidation: taking into account cross-shareholdings between subsidiaries
Faced with inflation, the energy crisis and environmental challenges, there is a strong temptation to implement general or targeted VAT cuts. However, in its report on VAT, the Conseil des prélèvements obligatoires (CPO) points out that these reduced rates are costly for public finances, economically inefficient and rarely evaluated. Explanations.
VAT: towards the end of reduced rates?
Faced with inflation, the energy crisis and environmental challenges, there is a strong temptation to implement general or targeted VAT cuts. However, in its report on VAT, the Conseil des prélèvements obligatoires (CPO) points out that these reduced rates are costly for public finances, economically inefficient and rarely evaluated. Explanations.
How should Canadian trust assets be taxed?
For several years now, the French tax authorities have been looking into a number of cases of potential tax fraud involving large French fortunes. They are said to have used Canadian trusts, via the Blue Bridge wealth management company, to evade French wealth tax. However, in ruling no. 21/10189 of February 6, 2023, the Paris Court of Appeal held that the assets of a Canadian trust were only taxable in Canada and not in France, thus ruling out the possibility of tax fraud. Explanations.
The fight against money laundering: a system with room for improvement
In its report on developments in France’s anti-money laundering system between 2012 and 2022, published on February 23, 2023, the French Audit Office (Cour des Comptes) takes stock of France’s anti-money laundering system.
While, like the Financial Action Task Force (FATF) in its latest 2022 evaluation report, the Cour des Comptes notes significant progress in the fight against money laundering, certain shortcomings persist.
Patronage and taxes: how to benefit from a tax reduction to support causes close to your heart
Corporate philanthropy is an increasingly common practice in the business world, involving the provision of financial support to associations and foundations, without expecting anything in return. In addition to contributing to philanthropic causes, corporate philanthropy also offers attractive tax benefits for companies. However, it is important to distinguish patronage from sponsorship, which is more of a commercial activity with direct rewards.
Tax lawyers’ professional secrecy: what are the limits when faced with the investigative powers of the tax authorities?
It is difficult to reconcile the rule of professional secrecy with the investigative powers of the administration. The question of compatibility for any investigative activity of the administration necessarily arises, and in particular for the right of communication.
Tax rescripts
It is often important to know in advance the position of the tax authorities on a factual situation presented to them, but also, more specifically, on the interpretation of a tax text or measure on which they have no position. In this sense, a tax rescript is a response from the tax authorities to a question from the taxpayer concerning the interpretation of a tax provision in force, or a factual situation with regard to tax law.
The fight against tax fraud: what action has been taken on the recommendations of the Senate’s fact-finding mission?
In 2022, collections after tax audits reached 14.6 billion euros, i.e. 8.2% and 1.2 billion euros more than in 2021, according to the February 23, 2022 press release from the Ministry of the Economy and Finance. An opportunity to take stock of the follow-up to the recommendations made by the information mission on the fight against tax fraud and evasion in its report of October 25, 2022.
The imposition of the metaverse: challenges and issues
If the metaverse is a real craze for tech companies and multinationals, this virtual world also raises many questions about the applicable legal and tax rules.
The different types of tax credits
The OECD in its latest report (dated September 21, 2022) on the evaluation of tax policies revealed that many countries had increased́ the generositý of tax incentives for businesses in order to stimulate investment and innovation, particularly to promote environmental sustainabilitý. This continues with the case of France in the Finance Bill for 2023 allowing for the adaptation of certain schemes to promote the energy transition.
These tax incentives can result in the application of a tax reduction or credit.
For companies, how to deduct your depreciation?
As a sole trader or company director, it is essential that you optimize your company’s tax situation by using deductions on your taxable income.
Depreciation allows you to reduce your taxes by taking into account the loss in value of some of your assets and investments.
Under what conditions can a provision be deducted?
A provision is a future expense or loss that is not yet effective at the end of the fiscal year. It will nevertheless be deductible from the company’s taxable income.
What are the deductible expenses for a company?
For a company, deductible expenses are expenses incurred in the production of goods and services that can be deducted from taxable income. On the contrary, other expenses can be added back to the result, so it is important for the manager to identify these expenses.
Resources
French rights
Transfer pricing (art 57 CGI)
Transfer pricing documentation
Public finance website
Transfer pricing declaration form
CBCR form
Transfer pricing guide for SMEs
Technical resources
Transfer Pricing In France
OECD Transfer Pricing Guidelines
Fiscalité internationale
Overview of the French tax system
France’s international tax treaties
International law
BEPS Project
Transfer pricing action report (13)
Tax definitions
Taxation concerns the methods used by governments to collect revenue, mainly through taxes. This section clarifies these concepts, explaining the different types of tax and their impact on individuals and businesses.
Tax Threshold
Tax threshold The tax threshold is a major concern for taxpayers, who seek to understand at what level of income they will be liable to the tax authorities. This is an essential element of tax...
Tax residence
Tax residence Tax residence is a central concept in the understanding and application of tax law. It determines the obligation of an individual or legal entity to pay taxes in a given country. This...
Tax regularization
Tax regularization Tax regularization is an indispensable process for any individual or legal entity that needs to comply with current legislation on the declaration and payment of taxes. This...
Principe De Territorialité Fiscale
Principe De Territorialité Fiscale A country's tax system is often a reflection of its governance and economic principles, particularly as regards the principle of tax territoriality. This central...
Compulsory levies
Compulsory levies Taxes are an important part of a country's fiscal policy, playing a key role in the redistribution of wealth and the operation of public services. But what exactly does this mean...
Tax incentives
Tax incentives Tax incentives, an instrument at the heart of economic policy, aim to steer the behavior of taxpayers, whether companies or individuals, towards choices that are beneficial to the...
Flat-rate tax
Flat-rate tax Tax systems around the world are complex and diverse. In France, the term "impôt forfaitaire" (flat-rate tax) is frequently used in the field of taxation. This article aims to clarify...
Progressive taxation
Progressive taxation The subject of progressive taxation is of crucial importance in today's economic and social debate. It concerns the way in which taxes are levied according to taxpayers' income,...
Tax Scale
Tax scale The tax scale, a concept as crucial as it is ubiquitous in tax life, is the backbone of progressive tax systems. It is through this mechanism that States regulate the contribution of...