Tax Relief For Disaster-Stricken South West France

by Ulrika Lomas, Tax-News.com, Brussels

02 February 2009

In the wake of devastation caused by hurricane Klaus in the southwest region of France, Budget Minister Éric Woerth has announced a series of emergency tax measures, designed to alleviate the financial burden on affected individuals and businesses.

Given these “exceptional circumstances”, the Minister has decided to take exceptional measures, including granting certain tax reductions and – in some cases – waiving tax entirely.

A request has therefore been made to the directorate of public finance to consider favourably any appeal for payment and penalty payment deferrals, and for delayed tax declarations, solicited by individuals, businesses or other professionals, including artisans and tradesmen.

According to the Minister, requests for tax deferrals or reductions will be examined on a case-by-case basis, taking into account the extent of the damage incurred, and the particular difficulties currently facing the taxpayers. Consideration will also be given to the amount of indemnities received from insurance companies and other aid granted.

Éric Woerth has finalised other key tax initiatives to benefit the disaster-stricken, including the following:

• Upon request, 2009 payments of housing and land tax on developed property will be deferred in their entirety, provided that the property was either destroyed in the storm or condemned to demolition.
• From 2010, property owners may request a re-evaluation of the value of their land rent, provided that the property suffered a significant and lasting depreciation as a direct result of the storm.
• Businesses affected by the storm may, by law, be entitled to certain tax relief on business tax, in cases where activity has either ceased or been suspended for a period of at least a year.
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