France Improves Tax Transparency

by Ulrika Lomas, Tax-News.com, Brussels

21 April 2010

French Finance Minister Christine Lagarde has unveiled details of a new procedure designed to improve transparency and to facilitate understanding of the country’s tax system.

In a bid to strengthen legal security in terms of taxation, and to improve the quality of the French tax system, Finance Minister Lagarde has revealed plans to introduce a period of consultation for taxpayers on certain fiscal proposals. Under the plans, where possible, draft texts will be made available on the Internet, enabling all stakeholders, whether individuals or businesses, to digest the information and to propose any modifications.

According to Lagarde, this consultation period will enable the government to take into account any comments and to then submit a refined bill to the country’s Council of Ministers. The overall aim of the initiative, Lagarde emphasized, is to improve the quality of the texts, to facilitate parliamentary debates and to limit the number of amendments.

The Finance Minister confirmed that the new procedure will apply to all texts where public consultation is deemed beneficial. Lagarde noted that the method was trialled last year when the government published the complete text on local business tax reform prior to its adoption.

In order to help taxpayers to better understand the country’s tax laws, Finance Minister Lagarde also revealed plans to reform the existing procedures for publication of fiscal instructions, in other words, the commentaries that are published to explain in concrete terms how to apply the new legal measures. The government intends to publish these draft instructions more quickly and within a specific timeframe, Lagarde pointed out, while noting that a schedule for publication of the instructions would appear on the Finance Ministry’s website.

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