Tuesday, July 26, 2016

Taxes: Bercy puzzle on withholding – Le Parisien

The administrative phobic who hope for forty years rejoice. But this reform promised by Hollande for 2018, gives trouble to the best tax practitioners.

P journal for the ele reform withholding was given to the Finance Bill next fall. And everything indicates that the text coming out of the Ministry of Finance does not have the clarity of spring water! Indeed, for weeks, the best Bercy tax experts are tearing their hair on reform, the bill submitted for opinion to the State Council in June, having returned with some erasures.

the sages of the highest administrative court has pointed in particular the risks of damage to privacy, related to the transmission of the tax rate to the employer. “A gray area that we deplored in our Green Paper on the subject a year ago,” sighed the unions hostile to reform. Bercy has had to make adjustments. Michel Sapin and Christian Eckert, Minister of Finance and Secretary of State for the Budget, will review the case tomorrow, the Council of Ministers.



The concern for privacy

two identical wages but with two different tax rates (related to civil status, number of children, income from assets, etc.) may not provide clear information to employer on his troops. Except … in many SOHO-SME where the employer knows the personal circumstances of employees. “This can then easily guess things …” worries a trade unionist. The risk ? Wage discrimination with type arguments: “You have three children, as tax rates, so you have the heritage … I preferred to give your increase to your colleague, who is his tenant housing. “Moreover, the government took a first precaution by offering couples individualize their rates.



The patch Bercy

The taxpayer anxious to preserve the confidentiality of its income may request that a tax rate “default” – indexed on the scale of a single person without children – is transmitted to his employer. The taxpayer then pay the balance of its income tax retrospectively. In short, it is the return of the tax as an interlocutor … while withholding was supposed to prevent! And the establishment of a “gas factory” worries a ministry official.



The unions brag

“The Council State has confirmed that the withholding tax is not a simplification but it increases the complexity of the tax collection! insisted yesterday the spokesperson of Solidarity Public-Finance, the first union of taxes. We regret that political decision to punch that faces fiscal reality today. “



The Department irritated

” The State Council has made very few corrections to the text, “estime- Do we, instead, at Bercy. Fears about confidentiality of all income? “The small salary that comes from time to time in the Porsche Cayenne, anyway, his boss suspects he has other financial income …” growls a framework, adding that if people with low pay but a high patrimonial income are “extremely limited”. As it stands, Bercy does not intend to change course. “The calendar is always the finance bill this fall, for entry into force in 2018,” they assured yesterday the department.

2017 fiscal year white

the implementation of the withholding – tax vast five-year project, meant to simplify the tax – n ‘ has never seemed so mean high difficulty. But the big question remains: Will we one year without taxes? The answer is still yes, somehow … In 2017, the taxpayer shall pay tax in effect he has on earnings in 2016. Then in 2018, he will perform the IR on 2018 revenue. in short: in 2017 its income will not be taxed. Not anecdotal … in an election year! “False”, defends the government, denying any electoral strategy. “Safeguards will be in place to ensure that taxpayers maximize their taxes,” says Bercy. For example, to prevent deadweight and abuse, the 2017 revenues will still be a statement. This will give the same result in the issuance of a tax notice, then canceled.

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