A "niche" at 22 billion for businesses

Its cost justifies his epithet "superniche. Since 2007, companies no longer pay tax on gains on the sale of their subsidiaries, provided that they have held at least two years. However, this exemption – also known as "niche Cope" according to the budget minister at the time – has generated a shortfall for the state $ 3.4 billion in 2007, 12.5 billion in 2008 and 6.1 billion in 2009, according to figures from Bercy. And it is only the crisis that has lowered the rating last year, companies unwilling to yield to loss of equity.

"With this measure, the state subsidizes big businesses that do not need. 22 billion in three years, it's insane! "Protests Jerome Cahuzac, President of PS Financial Committee of the Assembly took up arms launched by his predecessor, Didier Migaud cons niche Cope.In fact, as revealed by the magazine Marianne, Danone has saved in 2008 500 million corporate tax (IS) on disposal of Danone Biscuit conducted in 2007 (IS being paid one-year lag) . For Suez, the time still married to GDF, the rebate was $ 800 million. Other big winners: LBO funds (leveraged management buy-out), companies that buy and resell a few years later.

Still, this reasoning boosted Philippe Marini, the UMP rapporteur of the Finance Committee of the Senate and growing end of 2004, the amendment creating the niche Cope: "The debate on the shortfall is nonsense. If capital gains were taxed in France, transfer operations would be from Belgium or the Netherlands, through holding companies located there.Or even sales would not do at all! The French State would recover nothing in taxes. "An argument given in Bercy where it does not reach this niche. In fact, in the OECD, 21 out of 29 countries practice the exemption of capital gains payday loan. "And it is very easy for a French company to create a holding company elsewhere in Europe," the entourage of Christine Lagarde, Minister of Economy.

That's exactly what happened in the early 2000s, when France was one of the few countries to tax the capital gains. "Many French companies have established overseas holding companies which carried the titles of their various subsidiaries. Thus, they could sell securities without paying taxes, "said Jean-Yves Mercier, partner at law firm CMS Bureau Francis Lefebvre.And two reports, one from the Council tax burden (CPO, an offshoot of the Court of Accounts), had sounded the alarm. "A holding company relocated, the risk of losing ultimately a decision center," says Philippe Marini.

More holdings in France

The final report of the 2009 OAC welcomes the end of the French exception. And Bercy unsheathed his statistics: since the gains are exempt, believes the number of holdings in France (1 112 in 2007, 1 276 in 2009). On the side of the MEDEF, it was noted that while the economic fabric wins. "Today, companies must adapt, evolve their business heart, which can pass through acquisitions or disposals of subsidiaries.Fortunately, the French companies may, like their European counterparts, do not brake tax, "explained Marie-Christine Coisne Roquette, Chairman of the Committee on Taxation Medef and CEO of Sonepar.

Finally, the cost itself of the niche is overvalued. Because, by convention methodology, it is calculated by pretending that capital gains were taxed at 33.3% standard rate of tax. However, they were only 19%. The loss caused by the exemption rather turn around 12 billion over three years.

April 18th, 2010 in Uncategorized, economy, events, publications, world | tags: , , , ,