Some provisions of the draft finance law for 2017 were rejected as the “Google tax” on the profits of multinational companies operating in France.
The constitutional Council has ruled out, Thursday, 29 December, the grievances of the members of parliament about the collection of the tax at the source, without giving his rein to the leading measure in budget 2017, and has censored the “Google tax” on the profits of multinational companies operating in France.
Seized by more than sixty senators and sixty members, the Council has decided on sixteen articles of the draft finance law for 2017.
On the deduction at source of tax on income, the major reform of the text of the budget shall enter into force on the 1st January 2018, the advisers spoke on four points of the measure, and were not censored. In detail, they have held that the provisions of the article were ” not unintelligible “, as argued by the parliamentarians.
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there is Nothing to prevent the implementation of the measure, but Council members have pointed out that other provisions of tax collection at the source, over which they had not been seized, in the future could be ” the object of priority issues of constitutionality “.
They were also of the view that, ” given the open option to taxpayers allowing them to choose a rate “default“ that does not reveal to their employer the tax rate of the home, the legislature [did] not infringe the right to respect for private life “.
moreover, ” specific measures are provided, in the case of business leaders, to avoid that they can make trade-offs designed to take advantage of the transition year “.
Censorship of the ” Google tax “
Finally, the Commission considers that the companies will only play a ” collection role “, the recovery will continue to be insured by the State, and they will, therefore, not to be indemnified in this respect.
The text, which has generated intense fighting in the Assembly and in committee, has been definitively adopted on December 20, the national Assembly, but the right has already announced that in case of alternation, it would go back on the deduction at source of tax on income.
Thursday, the Board has censored another key measure, article introducing a ” Google tax “, which was aimed at strengthening the taxation of profits diverted by multinationals on their activity performed in France.
The councilors have rejected this provision on the ground that the tax authority may not have ” the power to choose the taxpayers who should or should not fall within the scope of application of the tax on companies “. The government had expressed reservations on the amendment introduced by Yann Galut (PS).
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