• French Taxation of Trusts : New laws for reporting and taxation of trusts

    January 19 2012, 08:30 - 08:30
    Location: AmCham France - 77 rue de Miromesnil, 75008 Paris
    The Chairman of the Taxation Working Committee of the American Chamber of Commerce in Paris is pleased to invite you to a breakfast roundtable to discuss the recently adopted French laws regarding the reporting and taxation of trusts.
    On July 6, 2011, the French Parliament adopted a regime for the taxation of trusts, including reporting requirements and penalties for failure to comply with the new laws.The laws are not entirely clear, and more guidance is being prepared by the French authorities. But, as the laws themselves are already in effect, it is critical to understand their actual and potential implications on French trustors, trustees or beneficiaries. 
    For many years, the French tax authorities were reluctant to commit to rules regarding the French tax treatment of trusts. After all, “trusts” as entities do not exist
    formally under French civil laws. They are creatures of common law, and French persons having recourse to trusts were engaging in offshore activities in one way or another. In light of the persistence of trusts in the French tax landscape, legislative silence became unworkable, and these laws were adopted. 
    The following questions are among the topics to be discussed during the breakfast roundtable:
    =623; Definition of “trust” under the new law;
    =623; Income taxation of the beneficiary on trust distributions;
    =623; Liability for wealth tax on trust capital; 
    =623; Reporting requirements regarding trusts and trust assets; 
    =623; Penalties for failing to comply with the new laws, and actions to be taken to reduce the risk of penalties.