Note that with effect from Sunday 8th December, 2013, article 12 of the recent French anti evasion law increased the penalties for non compliance from a minimum of €10.000 to €20.000, and where greater, from a rate of 5% to a rate of 12.5%

Also note that it is not only the Trustees that can be pursued for these penalties, the administration can charge these to beneficiaries and settlors, under defined circumstances, particularly in relation to the levy declarations under 2181 TRUSTS2. Whether the settlor or beneficiary concerned is resident in France or abroad is immaterial.

What is more, the French will attempt to use the EC or other Treaty tax recovery mechanisms to have their régime recognised, unless challenged. The Trust register and declaratory régime is now a barrier to movement within the EU.

There is no English politician or MEP with the cahones to bring their French colleagues to heel. They are leaving it to the lawyers.

Contact Peter for advice and assistance.