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.

France’s tax police: towards a repressive tax policy

The fight against tax fraud has become a major preoccupation for tax authorities in France. In response to this problem, the government has introduced a new tool: the tax police. This measure is an important step in the crackdown on tax crime, which is becoming increasingly severe. In this article, we’ll look at the introduction of the tax police in France and its impact on tax policy, as well as the importance of calling on the services of a tax lawyer specializing in criminal tax matters.

What is the annual 3% contribution on real estate?

Legal entities that own real estate in France are subject to a tax of 3% on the value of their properties. This tax on the fair market value of real estate was introduced by the 1983 Finance Law with the objective of ensuring visibility of the chains of ownership of properties by French and foreign entities, allowing the identification of shareholders and thereby verifying the proper application of the Wealth Tax (ISF), now replaced by the Real Estate Wealth Tax (IFI).

What debts are deductible under the IFI?

Debts on taxable (real estate) assets are deductible from the value of these assets for IFI purposes. However, this deductibility is excluded by law if the debts are not related to taxable real estate assets. This is the case, for example, for debts incurred to maintain the family’s lifestyle, to acquire non-taxable assets (such as a business) or exempt assets (such as premises used by a taxpayer for professional purposes).

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).

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.

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 domicile

Tax domicile Domiciliation is a key concept in the field of taxation. It determines the country in which an individual or legal entity is subject to tax. This concept is essential to understand for...

Tax Return

Tax Return The tax return is a must for many taxpayers. It is used as the basis for calculating income tax, and for declaring income received during the previous tax year to the tax authorities....

Tax Base

Tax Base The world of taxation is littered with technical terms, among which "tax base" is a central concept. This key element determines the extent of the tax contribution applied to both...

Progressive Tax Schedule

Progressive Tax Schedule Income tax is a central element of the French tax system. Its structure, based on a progressive scale, aims to balance citizens' contributions according to their financial...

Tax Shield

Tax Shield The subject of taxation is often hotly debated, as much for its direct impact on individual purchasing power as for its essential role in the functioning of the State. Among tax...

Tax base

Tax base The tax base is a central term in the field of taxation, but one that often remains unexplained to the uninitiated. Understanding this concept is essential to grasping how taxes and fiscal...

Tax credit

Tax credit In the complex world of taxation, various mechanisms enable taxpayers to reduce their taxes or benefit from certain advantages. One such mechanism, known in France until 2005, is the...

Unitaid

Unitaid Unitaid is an international initiative that plays a unique and strategic role in the global healthcare system. Founded in 2006, this organization uses innovative financing methods to improve...