The market as it is in Paris turns well

Everything for it! This is what will still be able to say this year some 500,000 taxpayers subject to the ISF. Their annual exercise will be always as difficult and subjective. Indeed, it is already difficult to assess real estate heritage for its fair price. But what about the tool: how much should be declared, which may be exempt Professionals and their customers snapped up hair. And so, for what, finally To enter EUR 3.6 billion in State funds. The 42 billion euros that requires each year servicing the debt, the recipe is derisory. It is also on the 75 billion euros that cost each year tax niches. However, to listen to the actors in the political debate, it would seem easier to tackle these hundreds of exceptions to a single well identified text!

Unless the fatal attack comes from justice. Already, two courts of appeal challenging the constitutionality of the wealth tax. A decision of justice in the sense of taxpayers would open unsuspected perspectives. But while waiting to here in mid-June, accountable individuals do not filled to their obligations. This is to advise the statement that had been held the last round table of the circle of tax practitioners. Organized exclusively for "Les echos" and "Invest", it saw the participation of its President, Philippe Bruneau, Rémy gentleman, notary in Rennes, Michel I Giray, notary in Paris, Luc Jaillais and Jean-Yves Mercier, lawyers associated with CMS Bureau Francis Lefebvre, and Bernard Monassier, notary at Paris, and Frédéric Bonnevay, Economist and tax.

Lai anticonstitutionnelLors the recent debate on the tax shield, several voices have expressed the notion of return on the ISF, but provided give any French taxation flat. Is it possible to imagine a removal of the tax on capital in a reasonable horizon

Bernard Monnassier: I am perhaps very hopeful. But whatever happens, the imposition of capital must be fully reviewed, both in its method of detention in its transmission, at the level of the rights of mutation and gains regardless of the political color of future Governments.

Philippe Bruneau: It is not possible to immediately increase taxes because it must first meet the conditions for self-sustained growth. But in two years, it is clear that the ballot will be the color of an income tax return. Right to left, the tax reform will become a major topic. The question of the ISF will be addressed without taboos.

Jean-Yves Mercier: Short term, I see no loss of Lai by legislation. However, it will be interesting to see how the Court of cassation responds to a priority question of constitutionality which comes in two courts of appeal (Montpellier and Bordeaux): it concerns the legitimacy of the ceilings of the ISF decided under the Juppe Government. Taxpayers complain that is treated differently the liable according to the importance of their heritage: either a strict Cap income up to a certain level, or the maintenance of a minimum taxation irrespective of the amount of revenue for the most important heritages. In the event something on the Constitutional Council, you imagine well that it is the ISF which would run. The latter is a direct tax. Normally, it cannot achieve more than the income that provides the heritage it strikes. A good surprise could come from the Court of cassation which would be sensitive to this issue and that the forward to the Constitutional Council, which could be induced to take a very bold decision. But if this event does not occur, we will remain in the current working.

Or individuals can now directly challenging certain legislative provisions.

Jean-Yves Mercier: Indeed, they may complain of legislative provisions which ignore the rights recognized by the Constitution. Here, in this case, it is the right to property which is not respected, and the right to equality.

Advise your customers to engage in this process

Jean-Yves Mercier: quite.

Luc Jaillais: But to enable them to challenge the constitutionality of a statute, must be that they already in tax litigation, for example, in a challenge to recall of tax.

The true price of stone

The ISF is a primarily real estate tax. In this respect, indicators are conflicting. If an individual lives in Paris and the Paris region, can argue a decline in the value of its main home

Bernard Monassier: Everything depends on the price indicated last year. Was consistent with the reality of the market If this is the case, do me not extravagant to reveal a haircut understood between 4 and 7, or 8.

If individuals had much decreased their recovery last year, recommend them you to indicate the same price this year in a way to blur the haircut

Bernard Monassier: of course.

It is still a paradox! Throughout the year, indicators suggest that prices are rising and the approach of the month of June, suddenly, the official information is that they have dropped!

Bernard

Monassier: This is yet the case. The average apartment in Paris is not the same price now that a year ago.

Michel I Giray: I did not give the Council to show a decrease in such. The market as it is, in Paris, turns well.

Bernard Monassier: Exceptional property, I agree. The apartment at the bedside of Notre Dame will always be at the bedside of Notre Dame. Even if there is only three purchasers in the world, housing will sell still and without discount. But this is not the majority. Compelling statistics are 30 of sales less State on all of the France. It cannot be denied that the market is more favourable to the purchaser to the vendor. I have an apartment purchased on December 20, 2008 in the 7earrondissement example. Last year, an apartment in the same building, sold at a lower price by 4.

The evaluation of the tool to work impossible

Always is evaluation of the professional tool problematic

Rémy gentleman: absolutely. Family tear because some members are exempt, while others are indebted, or unable to pay. In families which agree well, this translates into distributions of dividends in a manner precisely to allow the family members who are not at the controls of the company, to pay their EWB. But in those who do not agree, we are witnessing a blackmail to tax, which is to buy low-priced shares of the minority by the majority that they are exempt.

Outline of a reform

The ISF is decidedly complex. Is it a French specificity

Frédéric Bonnevay: Not necessarily. Our taxation in contrast, in any case, with the extreme simplicity is the rule in emerging countries! This area also, the competition made us the wrong. A system closer to the "flat tax" - but very developed, with redistribution - still, in theory, the most effective.

Philippe Bruneau: The IR - CSG merging will in this sense: between a tax which earns more and another which applies to the greatest number, the approximation is effective. The problem is that absorbs that!

Michel I Giray: It seems to me difficult to ask that there is more than a single tax. This would mean that funding for health is the State. The consequences can be catastrophic. In addition, the risk is high disempowered people. While on the other hand, with the rise of dependency, must hold accountable. Personally, I would prefer to pay myself my health spending and be exempted from CSG.

The future of investments défiscalisants

Was the general criticism of the tax niches the provisions that allow to soften the ISF Do not forget that a General Inspection of finance report was very critical about the companies which market the FCPI and other FIP Lai...

Bernard Monassier: Go-ahead on collected commissions have been plotted. But there was no deep challenge to the system. It is more likely to be perpetuated that he helped a number of people to give money to charities. However the needs of the latter continue to increase. Therefore, I do not see how one could challenge the investment for companies if it does not affect donations to foundations. But the usefulness of this philanthropy is more to show.

Frédéric Bonnevay: It remains not that tax niches will be the first lever for stemming the drift of the expenditure. Let us not forget that they represent EUR 75 billion, twice the amount of the stimulus package!

Michel I Giray: Sometimes there are niches that will return and come eat the dog! I think the social security payments on contracts of life insurance in units of account that come to be charged since January 1, then of outcomes by death. Everyone said to prefer contracts in units of accounts, because the contracts in euros support an annual levy comes impair their profitability. Now, boom! It will take at a rate of 12.1 for investments that would have taxed at 5 a few years ago. At the time, it is now more interesting to subscribe a capitalization fee contract, since it suffers no taxation. This will affect life insurance and therefore cause harm to the Treasury. Not to mention that capitalization is much more interesting to the ISF because it remains permanently valued at its amount during the initial subscription.

Bernard Monassier: This example means that the investment of the French policy will need to be reconsidered. In particular, life in bonds is to review. A new landscape draws on legal, political, financial, tax plan. These changes are essential. Otherwise, the future will be much darker.

Frédéric Bonnevay: Without tax reform, debt and its cost of service increase mechanically. However, historical analyses that demonstrate a public debt higher than 90 of GDP - which should be the case of the France in 2013-2014 - led imanquablement to a loss of budgetary control.