Social Contributions to be levied on 2015 income?

[Visky]

Have I understood this right? 

According to French Property website,  S1 holders will not be exempt from Social Charges on investment income earned in 2015.

http://www.french-property.com/news/tax_france/social_charges_constitutional_council_ruling/

I haven't been able to find any other references to this - has anyone else any further info?

[parsnips]

[quote user="Visky"]

Have I understood this right? 

According to French Property website,  S1 holders will not be exempt from Social Charges on investment income earned in 2015.

http://www.french-property.com/news/tax_france/social_charges_constitutional_council_ruling/

I haven't been able to find any other references to this - has anyone else any further info?

[/quote]

Hi,

   Here is what Blevins Franks say;

https://www.frenchentree.com/french-property/french-tax/social-charges-refund/

  Also this from a french source ;

https://www.facebook.com/cardeapatrimoineAM/posts/932169483538132

They both seem to say that CSG on 2015 income is reclaimable, but given the chaotic way the french do things , one never knows .

  There is an appeal against the proposed re-imposition, brought by french deputies, going to the Conseil d'Etat and the CJE , and their advice is , regardless of what the government may say , keep on applying for reimbursement , and making sure (in writing ) that your claim is registered.

  After 2016 , this could go on for years , but there is a good chance of a final good outcome -provided you claim within the time limits - by 31/12 of the 2nd year following the taking of the CSG. 

[Visky]

Thank you very much Parsnips - I was aware of Blevins Franks take on this but it's good to see a french view in agreement.

Having followed Blevin's earlier advice and cashed a Sterling investment

in Dec 2015 (with tax payable 15 Jan 2016!), I'm really keen to find

out the latest.

The French property website doesn't seem to give a source for its latest info, so I was wondering if anyone had seen anything on a French government site to clarify this.

[woolybanana]

The minister of budget, Mr Sapin did say some time ago that he was going to do this to make foreigners pay social charges so it is no surprise.

[parsnips]

[quote user="Visky"]

Thank you very much Parsnips - I was aware of Blevins Franks take on this but it's good to see a french view in agreement.

Having followed Blevin's earlier advice and cashed a Sterling investment

in Dec 2015 (with tax payable 15 Jan 2016!), I'm really keen to find

out the latest.

The French property website doesn't seem to give a source for its latest info, so I was wondering if anyone had seen anything on a French government site to clarify this.

[/quote]

Hi,

 It is difficult to find a clear printed confirmation of this , so as I posted previously I contacted the finance ministry , where a very helpful man told me that ,yes , the 2015 income would be exempt from contributions,but that it was unclear whether the declaration forms would be altered , or whether the contributions would have to be paid and then claimed back.

 As the contributions are to be taken on 2016 income , the second procedure is most likely.  He did say that for the CSG which appears on the avis (on capital gains on investments for instance), you should not pay , but put in a claim and demand a "sursis de paiement".

 He also said that they were working "from day to day" as different instructions came in quick succession. He did have to go away and consult with colleagues a couple of times.

It occurs to me that a note and copy of S1 with the declaration might be helpful.

  If you have any french LA euro funds , or taxable bank accounts , you will have to get details from the end of year statements, (or get printouts from the bank -CA did that for me for all the years in question.) , and claim for those also.

[Visky]

[quote user="parsnips"]

Hi,

 It is difficult to find a clear printed confirmation of this , so as I posted previously I contacted the finance ministry , where a very helpful man told me that ,yes , the 2015 income would be exempt from contributions,but that it was unclear whether the declaration forms would be altered , or whether the contributions would have to be paid and then claimed back.

 As the contributions are to be taken on 2016 income , the second procedure is most likely.  He did say that for the CSG which appears on the avis (on capital gains on investments for instance), you should not pay , but put in a claim and demand a "sursis de paiement".

 He also said that they were working "from day to day" as different instructions came in quick succession. He did have to go away and consult with colleagues a couple of times.

It occurs to me that a note and copy of S1 with the declaration might be helpful.

  If you have any french LA euro funds , or taxable bank accounts , you will have to get details from the end of year statements, (or get printouts from the bank -CA did that for me for all the years in question.) , and claim for those also.

[/quote]

Parsnips, you've given me hope. 

I did try a couple of searches before my first post, without much success.. but if there are previous posts I'll have another trawl and see what more I can find.

[isitlunchtime]

Hi!

I checked the website yesterday and found that I am being asked to pay the first instalment of Social charges relating to 2015 on the basis of one-third of what I was charged last year (relating to 2014)

Interesting as they reimbursed me everything I was charged last year in the middle of December - along with the amounts relating to the previous two years.

So either they are on automatic pilot, or they are trying it on, or they have changed the basis of the charge for 2015 retrospectively.?.

I have not seen anything definitive regarding this matter...

Anyway as parsnips suggests I have applied for a 'sursis' of the amount demanded furnishing them with the exact same argument as last time and copies of S1.

Will keep you informed!

[powerdesal]

I think it is a case of left hand vs right hand.

We received the request for payment of the first instalment yesterday, however, the day before the final re-payment for 2014 had hit our bank account.

We will ignore the 1/3 payment requests ( as in previous years ) and either submit a 'normal' tax return and subsequently apply for a reclaim OR wait and see if the tax forms are modified.

[Fittersmate]

We have today received a request of 1/3 payment. We put in a claim for refund of CSG paid for 2012,2013 and 2014 but have not yet received any communication from them about this after having supplied them with extra information that they requested. They received that on 18 December (according to the avis de reception).

Can anyone advise me on

1. How long we should wait before contacting them to ask for an update

2. What to do about the payment they are now requesting.

Many thanks.

[mint]

We, too, have today received a request for payment.

The official advice has always been to pay up and then, if appropriate, to reclaim.  Yes, I know, goes against the grain but, for other refunds in the past, this was what we were told to do.

Only on one occasion did the official put a line across the amount requested and hand wrote in the altered, reduced amount.

That was, however, exceptional and it was also in Dordogneshire where it is commonly believed that things are done in an expat friendly way (not true but urban myths can be pervasive!)