Non-residents with French assets over a value of € 1.3 Million
are required to file a Form 2725, with the appropriate
annexes by 2nd September, 2013 with the Service des impôts
des particuliers non residents, at Noisy le Grand.
Those trustees having French situs assets should check their
position and ensure that they are only holding financial
investments at 1st January, 2013. They too have to file a specific
Trustee Prélèvement declaration by 2nd September, or face severe
penalties: €10.000 or 5% of the trust assets.
I stress that there has been no indication given yet that any
such penalties will be limited to French assets alone, but to
penalise the entire fund would be disproportionate.
That only applies to Trustees with no French resident
beneficiaries or deemed settlors.
Those who have, and who have not filed or confirmed that they
are outside the scope of the declaratory requirements are already
in default. Their prélèvement declaration should have been earlier
this year. Please contact Peter for assistance if that is the
case.
See generally Resources Page: Summary of French Wealth Tax
(ISF), rates and filing dates for 2013
Those individual non-residents who have French assets over that
value, and also French source income should already have filed
their returns: See Resources Page /media/15859/introduction%20isf%202013.pdf
Whilst it is possible to argue that no declaration is required
where the net value of French assets and liabilities is less than
€1.3 million, but the gross value is higher, that is rarely
accepted by the French administration as an excuse for not filing,
and will inevitably lead to a query, a requirement for declarations
for undeclared years, and expense. The tendency is to require
a full asset and liability declaration to ensure that only French
situs liabilities are deducted. In the current budgetary situation,
there will be increase compliance pressure.