French members of parliament have indicated that offering taxpayers a chance for tax regularization through a lump sum 10 percent tax on assets repatriated would raise revenue for the government of around EUR 10 billion. Around half of this sum could be used to support small and medium enterprises (SMEs) and create employment. Under proposed legislation a ten percent charge would apply to the average annual unreported amount, while a 15 percent charge would be applied on assets acquired by inheritance or gift. A condition for this tax regularization would be that at least half the amount declared by the taxpayer should be invested in an SME with less than 250 staff. There would be an eight year holding requirement for the shares. The members of parliament expect that this simpler scheme would offer taxpayers more certainty about the outcome of declaring their assets and would therefore encourage a greater number of disclosures.
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France Plans Higher Exempt Threshold for Low Earners
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