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OFSO
18th May 2014, 10:01
Another ludicruous piece of legislation from our amis across the water...

On December 26th 2013 the French Government voted into power a law which says all employers must inform the tax office of any payments they make to additional or top-up medical insurance for their employees, as this will now be taxed as a benefit in kind as part of the recipient's income tax. Effective immediately, i.e. on the 2013 tax declaration to be made in spring 2014.

Needless to say, on that date all French employers had already submitted the tax information for fiscal 2013 to the tax office, not including the requirements of the new law.

I heard various suggestions last week as to how to rectify this situation, ranging from pretending the new law isn't in effect yet, to the employee (not the employer) declaring the amount as a benefit in kind. The Paris central tax office when asked said "we'll call you back". They didn't. A taxation specialist when asked for an opinion also didn't (but he did submit a bill for not providing an answer).

Ne pas déranger les chiens endormis was perhaps the best advice. Déplacez que votre résidence à Londres was another.

papabravowhiskey
18th May 2014, 13:43
This seems perfectly normal when you can also have (IIRC) 6 - yes 6 - changes in capital gains tax legislation in two years, all retrospective, and then the glorious retroactive imposition of social charges on what had been tax-free savings products, going back over 20 years! To speak nothing of the imposition of social charges on French-sourced income of non-residents, contrary to double taxation treaties and despite the EC ruling against it!

PBW