Anti-abuse clause for the wealth tax (ISF) cap (income held in a controlled company)
For the calculation of the wealth tax (ISF) cap, income distributed to a company subject to corporate tax and controlled by the taxpayer is added back when using that company has the main purpose of avoiding the ISF. Only the portion corresponding to an artificial reduction of income is added back.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Targets ISF taxpayers benefiting from the cap (ISF and income taxes limited to 75% of income) who held their income in a holding company to reduce reported income. The measure became moot when the ISF was replaced by the IFI on 1 January 2018.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Council of Ministers
Validation interne