TAXATION Bruno Parent, director general of public finances (DGFiP), is explained on Wednesday in front of the senators on the upcoming reform of the levy at the source…
France should it switch in the system of deduction at source of tax on income ? Before voting for or against this reform, the parliamentarians on the Senate finance committee wished to receive this Wednesday, Bruno Parent, director general of public finances (DGFiP), to ask him a few (or dozens) of questions. After you (patiently) listened to this hearing (almost two hours), 20 Minutes has retained the five main questions of the elected officials. And so it gives you the answers from the boss of the tax department.
>> also read : What the levy at source will change for you (and your employer)
The citizen can he still apply for an adjustment of the payment of taxes ?
Yes, ensures Bruno Parent. This request should be sent to the tax administration. If she accepts it, the development will focus on the tax remaining to be paid. In other words, no refund of amounts already collected will be made. The same rules that at the present time.
that said, Bruno Parent believes that the deduction at source should significantly limit the applications of discounts or moderation graceful. Simply because there will be ” more of a lag between the time the taxpayer receives income and the time they must pay the tax corresponding to such income “. The boss of the DGFiP states that at the present time, the majority of development applications came from ‘ people who have lost their jobs or who have retired “.
Why is the businesses that must collect the tax and not the tax administration ?
simply because the tax administration does not technically of the ability to collect real time income tax on the income. It could have been, at best, “collect the tax corresponding to the revenues of a given month, two months after their payment,” explains Bruno Parent. In addition, this scenario would still have demanded such an effort for employers and pension funds, since these would have had to transmit, each month, the amount of salaries and pensions paid in the previous month.
This explains why, according to the DGFiP, all of the countries that practice the picking to the source – either all the member States of the OECD with the exception of Switzerland and France – do not collect directly the tax on the income, but demand that their companies and their pension funds to play this role of intermediary between taxpayers and the tax administration.
>> read also : withholding tax: The government launches a website to explain everything to you
This reform will be really a “horror” for companies, as they say of the employers ‘ organisations ?
Bruno Parent seems to be in doubt : “most small businesses tend to use a service provider for their payroll, which is most often a software publisher. However, those we meet do not seem to want to charge the change that requires this withholding at the source on account of its minor significance. In addition, the editors include very regular changes in the regulations and they typically support “.
For larger companies who have their own payroll system, ” they are already necessarily in the DSN “, understand the statement of social name, which has automated the transmission of social statements from payroll data. “The DSN, it is 283 lines to fill out. The levy at source will add two. And the tax administration will provide to the collector the rates to be integrated. This is not the case in the United States or in Germany, where it is up to the employer to calculate the rate of each employee ! “, insists Bruno Parent.
>> read also : withholding tax: Why it seems more complicated in France than elsewhere?
This reform will help achieve cost savings, including staff ?
” The ministers have said very clearly : the aim of this project is not to reduce the expenses of the tax administration, but to improve the services rendered to the taxpayer, ” says Bruno Parent. It is estimated that during a first phase – non-dated – this reform will, on the contrary, a peak of activity, notably in ” the necessary guidance for users and collectors “. And then that the activity ” will return in a cruise plan “, with savings when possible, but ” modest “.
The director recalled that the collection of tax on personal income – is the field concerned with the collection at the source – mobilizes more than 1,200 full-time equivalents. “It is therefore technically not possible that the reform results in the removal of tens of thousands of jobs, as I can hear it sometimes “.
This reform does it cost money ?
If Bruno Parent does not directly answer in the affirmative to the question, as his statements demonstrate that the answer is positive. How much exactly ? The evaluation document prior to the reform – 413 pages all the same – don’t say it. What is certain is that it will be necessary to train the personnel. And this from the beginning of the year 2017, for everyone to be ready on January 1, 2018, the date of entry into application of the levy to the source (if the Parliament adopts the text). Bruno Parent ensures that these courses will be “massive” but ” developed mainly in-house “. He acknowledges that there will be ” costs in terms of travel “.
Then, it will be necessary to review the it system of the tax administration, but also of the State because as an employer (through hospitals, etc), it will also become a collector. Bruno Parent ensures that the “bulk” of these computational work will be carried out ” from internal means of the DGFiP. Our it teams, who are quite strong, will cope with these tasks “. However, the director admits that there will “still” an external cost, linked to the purchase of additional equipment and the costs of use of outside service providers for ” assistance “. This should represent ” a few tens of millions of euros “.
And if you want to participate :
The Senate proposes to each taxpayer or collector – to give its opinion on the reform of the levy to the source. For the moment, “this interactive site that has received 1.142 contributions, of which only two were in favour of this evolution,” says Albéric de Montgolfier (The Republicans, Eure-et-Loir), general rapporteur of the finance commission. If you want to participate, it goes here.
And if you want to (re) view the hearing of Bruno Parent :
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