Friday 19 July 2013

From 1 September 2013 – Reductions in French CGT on real property


The French Government has announced a reduction in the holding period of real property – down from 30 years to 22 years – to be able to achieve full exemption from Capital Gains Tax.

In addition, for the period 1 September 2013 until 31 August 2014, a further 25% special temporary reduction will apply and there is the promise of the lessening of the liabilities to CSG/CRDS etc on capital gains realised on real property.

No real detail has yet emerged and the formal legislation will be presented as part of the Finance Bill 2014 later in the year.

Monday 8 July 2013

G8 and others – No Hiding Place!


In a concerted effort to combat tax evasion, the G8 members have signed an accord for the automatic exchange of information which it is hoped will become the new “gold standard” for inter-governmental co-operation on tax fraud.

Other measures are also in the making: France, the UK, Germany, Spain and Italy have announced that, together with Singapore, the British Virgin Islands, the Turks and Caicos Islands, Montserrat, Anguilla, Bermuda, Gibraltar and the Cayman Islands, they have all signed up to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.  This means there will be an exchange of information (mostly one way, one would be guessing?!) in respect of bank accounts and assets held in these territories.  The “home” tax jurisdiction will, therefore, have access to extensive detailed information on the accounts and other financial assets of their residents, in order to ensure full disclosure and full compliance.

If you hold any previously unreported accounts or other financial assets, then you are urged to make a voluntary disclosure to the relevant tax authority.  It is always better to come clean now, and accept a reduced penalty for your “co-operation,” than wait for your financial details to wing their way from any of the above tax havens – the pain will be much worse if the home tax authorities find you first!
 
Contact us at info@petersonsims.com for further advice and assistance.

Wednesday 3 July 2013

Tidy up those UK bank accounts………


Expats living in France should already be familiar with the form 3916 – Comptes bancaires à  l’étranger – which is filed with the annual tax déclaration and discloses details of foreign accounts held. 

New legislation designed to catch tax fraudsters hiding money offshore (see news reports regarding the alleged activities of ex-Minister Jerome Cahuzac) could also apply to the monsieur-in-the-street who still has the odd UK bank account which he fails to remember or include on the annual form 3916 .  So now is the time to review all those small accounts that you may have opened years ago and which have lain virtually dormant for many years – tidy up your banking affairs and make sure you do not fall foul of the rules. 

If, during this financial spring-clean, you find some accounts which never made it on to your form 3916, then make a voluntary disclosure.  Governments are now particularly keen on sharing financial information about you and you would be astounded how, in just a few clicks of the mouse,  this information is available cross-border to the respective tax authorities.

For those with larger, undeclared,  foreign account balances, the net is closing! The Budget Minister, Bernard Cazeneuve, has told the French députés that if tax evasion is discovered, harsh penalties at the rate of 30% will be imposed on top of the tax due but for individuals making voluntarily disclosures the penalties will be scaled back at just 15% plus the tax due for what he called  “passive” frauds where, for example,  there are inherited accounts containing undeclared funds.  
If you need further advice, please contact us on info@petersonsims.com