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.
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.
How to account for stored production?
The determination of inventory is a fundamental element in accounting for the preparation of annual accounts. From a tax point of view, a stock is a set of goods held by the company which will be used in the production process to make a profit.
Sometimes, the manager is forced to carry out the annual inventory himself.
The Commercial Code obliges every trader to make an inventory of his company at least once a year(C. com. art. L 123-12) which must be communicated to the tax department during a tax audit.
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.
The declaration of profits for liberal professionals
Liberal professionals (lawyers, doctors, authors, artists, sportsmen…) come under the BNC (non commercial profits) regime of article 92 of the CGI. As such, they are required to file annual profit declarations under the “controlled declaration” regime, unless their profits are less than €72,600 excluding tax, which allows them to benefit from the micro BNC regime (provided that the nature of their activity allows them to opt for this regime).
Abuse of rights: the Conseil d’Etat validates an extensive conception of the notion of artificial arrangement
The Conseil d’Etat upheld the Versailles Administrative Court of Appeal’sdecision of April 1, 2021,No. 20VE002388 and 20VE002389, upholding the reassessments notified to Dassault Systèmes by the French tax authorities, in theConseil d’Etat’s decision of May 31, 2022, No. 453 175, Société Dassault Systèmes.
The declaration of profits for traders
Individuals who carry out a commercial, industrial or craft activity are taxed under the industrial and commercial profits regime (BIC). They are taxed according to their importance in micro-BIC, or in the real or simplified real regime.
How to determine your tax domicile?
To be subject to income tax in France, individuals must have their tax residence in France.
The notion of tax domicile is independent of civil domicile and nationality. Thus, a French person can be considered as not domiciled in France while a foreigner is.
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
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 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...
Tax on Financial Transactions in the European Union
Tax on Financial Transactions in the European Union Discussed since the 1970s and regularly brought to the fore, the European Union's Financial Transaction Tax (FTT) is a hot topic that combines...
Proportional distribution International taxation
Proportional distribution International taxation In today's global ecosystem, where economic borders are increasingly permeable, the question of the proportional distribution of international...
Patent Box
Patent Box The Patent Box concept is an increasingly coveted tax option for innovative companies looking to optimize their taxation of income from intellectual property. The aim of this article is...
Language tax
Language tax The concept of a language tax may seem foreign at first glance, but it is in line with contemporary tax debates. Let's explore what this notion means, and how it might be relevant in...
Vexatory Tax
Vexatory Tax In tax matters, certain terms immediately arouse interest as well as suspicion. One concept that is particularly controversial isvexatious taxation. But what does the term really mean,...
Capital gains tax
Capital gains tax When it comes to investing in assets such as real estate or equities, the prospect of capital gains is often a key objective. However, these profits are not tax-free. In France,...