French financial year

[Mikep]

I just received my "Declaration des Revenus Mobiliers" from my bank (Credit Agricole) for 2007 and was surprised to find that they had included a share sale from December 2006 (27th). This took me just over the "Seuil de Cessions" (sales value ceiling) and will cost me several hundred euros in capital gains tax, which would otherwise not have been payable. Has anyone else come across this? Does anyone know where the financial year dates are defined, if not the normal calendar year as I had assumed?

[Val_2]

It maybe that the date when you actually received your money is the key point if it arrived in your bank after 1st January 2007. We always have to state at the end of every December if there are any unpaid bills or the date the prélevément was taken in January for the usual end of month accounts with suppliers for December.

[allanb]

I don't know whether there are special rules for personal taxes, but according to all normal accounting principles, what counts is the date of the sale, not the date of receipt of the money.  Were you the owner of the shares on 1.1.2007?  If not, I think you have a good case for treating the sale as a 2006 transaction.

Even if I'm right, the bank's document will probably count against you in the eyes of the tax office.  I suggest you talk to the bank.  It probably won't be the first time the question has come up.

I do know from personal experience that the bank systems that produce these "helpful" tax reports are not infallible (though in my case it wasn't Crédit Agricole).

[LesLauriers]

I remember reading a posting that sales, after 24th December, are carried forward to the following year for tax purposes.

This would appear to confim the point.

[Mikep]

Thanks for the responses. I tried the bank, who were not helpful. I've now written to the tax office with the contract notes. The funds reached my current account on 27th December. I'll post any updates as they come in - just wanted to alert other readers.