ETUDES FISCALES INTERNATIONALES

I / LACK OF DEFINITION OF TRUST IN TAX FRENCH LAW... 3

In tax law, the trust is subject to administrative pragmatism.. 3

Disparate legislation   3

Doctrine and jurisprudence Praetorian   4

In terms of doctrine  4

In terms of jurisprudence  4

II / TRUST IN THE NEW TAX LAW... 6

A definition of trust for the French tax law... 7

The definition of the trust tax law   7

Definition of the  initial settlor. 7

 Definition of the fiscal settlor. 7

 Definition of the beneficiary. 7

B - The reporting and disclosing obligations by the trustee.. 8

§Who is the discloser ?  The trustee. 8

§What are the trusts to declare?. 8

§ The items to be reported. 8

§ The declaration coverage :8

§ Penalty for failure to report. 9

§Responsible for payment  of the fine. 9

The Taxation of the income of  a trust. 9

The taxation of the assets of a trust. 9

The tax treatment of transmissions at no cost through trusts.. 9

§The general principles. 10

§The event is the death of the settlor. 10

§  The rates  of inheritance taxex applicable. 10

i) if sent by gift or inheritance [IV]  10

ii) if the donation or transfer by death can be established.10

iii) The trustee is subject to the law of a state non-cooperative  10

iv) If the settlor is established in France  11

v) Summary Table  11

The rule of territoriality applicable. 12

The revision of the rule of presumption of ownership. 12

Who is responsible for payment of inheritance tax or gift?. 12

The property taxes on a  trust:. 12

­ The principle: the imposition of the settlor to a French tax on capital13

The settlor is the person legally liable for the ISF   13

An exception for charitable trusts or similar. 13

Maintenance of qualifications tax assets  13

­The exception: a specific levy on trusts. 13

a) the legal tax payer  : an individual person. 13

b) The effective tax payer : the trustee. 14

c) The basis  of the tax. 14

The levy rate. 14

Exceptions to the levy. 15

The general condition: A treaty with a Tax Information Exchange clause  15

Pension trusts companies  15

Les trusts dont les bénéficiaires exclusifs sont des trusts caritatifs  15

Trusts regularly reported to the ISF   15

The question of cumulation with the 3% tax   15

III-TOWARDS THE DEVELOPMENT OF RECOVERY ASSISTANCE. 16

IV-ENTRY INTO FORCE: NOT RECALL THE PAST.. 16

V THE ARTICLES OF THE LAW... 16

 Tax treatment of trusts in France final I .doc