Income tax, tax law, France, taxable income, autonomy of tax law, territorial scope, gross income, expenses, fiscal abuse, tax convention, domicile condition
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Abstract
Understanding the taxable income and tax law principles in France, including autonomy of tax law and territorial scope of income tax.
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[...] The amount of income is not taken into account. The main activity is taken into account. ? If it is impossible to determine the time spent on these different activities, the main activity is the one that directly or indirectly provides the largest share of their income. ? Finance Law 2020 to pose a presumption of domicile of great leaders in France 1st criterion : the person must exercise effective management functions 2nd criterion : the company must be headquartered in France and have a turnover > 250M?. [...]
[...] If the taxpayer is in this situation, it is necessary to search if this property produces income and if it produces income, it is necessary to compare these income with the other income of the taxpayer. Judgment of the Court of Justice 27 January 2010. - The cassation judge must verify if the French property is a source of income. The judge who limits himself to noting a property in France commits a legal error. When the taxpayer claims that his French income is exceptional and that his foreign income is the majority, the judge must verify the origin of these revenues, the production of revenue by the French property. [...]
[...] Art declaration 1789 : establishes a close link between tax and public expenditure. This post-revolutionary taxation is based on stamp duties, registration duties and indirect taxes. Respect for property and private life. At that time, fiscal law was a secondary discipline and could have led some weak minds to believe that fiscal law was a matter related to civil law. After the 1st World War, the state intervened more and more. The 1st GM caused a trigger effect: - The State finds itself with a significant need for resources and this is the appearance of productive taxation. [...]
[...] A convention can never directly serve as a legal basis for taxation. The tax based on French law cannot be based on a convention. Principle of sovereignty - The judge must, when seized of a dispute, first place himself in the light of the national tax law. In this approach, he searches if the taxation has been validly established and on the basis of which qualification. Then, in a second time, the judge must determine if the convention does or does not hinder the application of the tax law. [...]
[...] Article aimed at preventing abuse by taxpayers and restricting this rule. The idea of the maneuver is that the French citizen who is only taxed in Switzerland on a flat rate basis determined by the value of their residence cannot claim the status of Swiss fiscal resident. If the resident is taxed under a different mode than the flat rate, they can claim their status as a Swiss fiscal resident. - Additional elements come into play that are subtle (not examined): taxation on expenditure overall, expenditure corresponds to the standard of living. [...]
