US EditionFrance’s €5.5 Billion ‘Dutreil’ Tax Break Is Slammed by Auditor
15 Articles
15 Articles
The Court of Auditors has published a severe report on the Dutreil Pact, a tax system for the transfer of businesses within the same family. In addition to being costly for public finances, it is proving to be ineffective in the economy and favours de facto inequalities of wealth.
The Court of Auditors submitted its report on the Dutreil Pact on Tuesday 18 November. Despite a "high cost to public finances", the tax system presents "modest" economic results.
France’s €5.5 billion ‘Dutreil’ Tax Break Is Slammed by Auditor
A French tax break for company owners bequeathing assets to their children needs an urgent overhaul after costing the government more than €5.5 billion ($6.4 billion) last year, according to the state auditor.
The Dutreil pact, which is very advantageous for the transmission of family business, costs much more than expected to the state.
On the one hand, the financial court proposes to "remove the mechanisms of tax optimisation", on the other hand, to reduce the rate of exemption.
While the Doutreil Pact offers very advantageous tax conditions for the transmission of family businesses, the Court of Auditors considers its cost to be high for economic results "low
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