It is therefore not a priori limits as for ISF system today

News

Legislative

The Finance Act for 2006 brought us two major new features in Lai, with first:

The partial exemption of EWB in respect of the shares and shares held by a taxpayer in the society in which it works (or worked) or in a related company.

Securities held in a corporation carrying on a commercial, industrial, artisanal, liberal or agricultural activity other than purely civil activity concerned are:

by the accountable engaged in their main activity in the company, under a contract of employment or a social mandate on 1 January of the taxation year;

or still owe their rights to retirement, any subject that they hold their titles at least three years at the time of the termination of their functions.

The device is also applicable to securities held in a society which has links with the society in which the person liable operates (concept of related company) arm's length under certain conditions, and, within certain limits, the share of mutual fund company (CIPF) and Sicavas.

01/12 - 02/12 Access Monster Jam Trucks Tickets performing in State Theatre. Monster Jam Trucks is performing in Kalamazoo, Portland and Minneapolis. monster jam trucks tickets

02/12 - 06/12 Acquire Cirque du Soleil - Michael Jackson The Immortal Tickets performing in AT&T Center, Bank Of Oklahoma Center. Cirque du Soleil - Michael Jackson The Immortal is performing in San Antonio, Tulsa and Indianapolis. cirque du soleil - michael jackson the immortal tickets

04/12 - 05/12 Purchase Nickelback Tickets performing in Bradley Center, CenturyLink Center Omaha. Nickelback is performing in Milwaukee, omaha and Pittsburgh. nickelback tickets

Partial relief, to a maximum of 75 of the value of the securities, is subject to a period of minimum conservation of these titles in 6 years. This shelf-life is assessed as of 1 January of the taxation year in respect of which relief is requested.

Exceptions, the shelf life of securities violations results in forfeiture of the preferential regime, and retroactively.

This device is applicable as soon as this year, for the 2006 ISF.

There is not, for the time being, of formalism in respect of complete item "Shares or shares held by employees and directors before allowance" in column 4 of Schedule 3 of the Declaration with 100 of the value of the shares (the 75 reduction is to operate in page 3 of the main summary form). Should ensure, in future applications of the administration, to retain supporting documentation for charting a "property path" (title of shareholder and retain title to 6 years) and for the shares under the employee share ownership plans (CIPF and others), justify the share invested in securities of the company.

The "tax shield."

A new system of direct taxes on the income cap was established: it is the said mechanism of the "tax shield" which will take effect until the year 2007 the charges for paid in 2006.

This mechanism provides that the global imposition by income, the ISF tax and local taxes due in respect of a principal residence (excluding tax removal of garbage) cannot exceed 60 of income.

This device should apply at the same time to the current CAP of Lai device. It is nevertheless distinguished from the latter and, in particular, on the following aspects:

Tax shield provides a right to return of the excess taxes and therefore assumes a prior payment of tax before being able to claim a refund. It is therefore not a priori limits as for ISF system today.

The posted rate of 60 shield is less than that of the cap of Lai, but it does not cover the same taxes. Thus, additional social contributions (CSG, DRES, and additional sampling), or 11 on capital gains, are not taken into account in the shield. In addition, the revenue base upon which the latter is calculated is much broader than that provided for the cap of Lai system since it covers the whole of exempt income or non-tax, with a few exceptions, very limited.

Without going into the details of this new device which will take effect until next year, it is appropriate to take the measure of the latter, wait for the publication of the decree to come clarify reporting obligations and the terms of requests for restitution.

... Hoping that these terms and conditions of implementation allow the new system to be operational and not the obvious not the fact of their heaviness or complexity, of its substance!

Note, finally, that the rate of partial exemption from the securities subject to a collective commitment of conservation was raised from 50 to 75 (covenants Dutreil article 885 I bis of the General Code of taxes-CGI).

The case law

and the doctrine

Cass. September 27, 2005, no. 1324 FS - PB, large professional property exempt shares and shares of facilitator holding company

The essential role played by the officer of the Corporation holding company with subsidiaries as attested the proceedings of the boards of Directors and the report of the Commissioner of accounts as well as the existence of services rendered to the subsidiaries may allow to characterize the facilitator role of society.

Cass. October 11, 2005, no. 1247 FS-PBIR professional property exempt shares and shares in companies, qualified management function

The provisions relating to the exemption of EWB shares and shares scheme constituting professional property (article 885-O bis CGI) are applicable to the shares held by the Chairman of the Supervisory Board of a company limited by shares.

Cass. pers. 13 December 2005, no. 1670 FS-KBRI, Kundera; plate not consumed fraction of income literary and artistic property operating revenues not collected

Listed payments to an account of author in the books of the editor are a debt to income to be paid to the author, which is not in the base of the ISF.

Statement 7 S - 7-05 on October 3, 2005: professional property exempt shares or shares in companies flexibility made to the condition relating to the remuneration of the functions

Administration came to define the concept of normal character of earnings and provide some flexibility (see developments above on holdings in companies and the concept of exempt professional property).