Wednesday, September 12, 2012

French FM Eyes Revision Of Key Tax Treaties

www.bethelfinance.com

With the purpose of finally resolve the longstanding issue of tax avoidance, french Finance Minister Pierre Moscovici has recently highlighted the need for France to renegotiate the existing bilateral tax agreements in place with Belgium, Luxembourg, and Switzerland.

French President François Hollande had already said that he have in plan to revise these bilateral tax treaties during his presidential election campaign back in April.

Alluding to the ongoing debate on tax avoidance in France, the Finance Minister reiterated that a programme aimed at combating tax fraud is to be provided for within the framework of the country’s 2013 finance invoice, due to be presented to the council of ministers on September 28.

Evoking the case of LVMH Chief Executive Bernard Arnault, who is reportedly applying for Belgian nationality to avoid taxes, Moscovici highlighted that there is currently a issue with international taxation.
Concluded between two states, tax agreements are designed to ensure that taxpayers domiciled in one country and receiving income from another are not subject to double taxation, and to ensure that taxpayers do not fraudulently escape taxes.

The bilateral tax agreement between France and Belgium enforced in 1964. The agreement with Luxembourg has been in force since 1958, and the treaty with Switzerland since 1966.

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