The challenged compatibility of the 3% tax on dividends regarding the French Constitution



The challenged compatibility of the 3% tax on dividends regarding the French Constitution
At the request of Arsene Taxand, The French Supreme court has just been asked by an administrative Court about a constitutional question, regarding the compatibility of the 3% tax on dividends to the French Constitution.
 
This contribution, provided by Article 235 ter ZCA of the French Tax Code, is assessed on all distributed incomes (within the wide meaning of the French Tax Code). It has to be noted that, besides the Constitutional question, the European Commission is currently reviewing this contribution, especially regarding a potential infringement of the EU freedom of establishment.
 
The transmission of the question before the French Supreme Court is based on various arguments developed by Arsene Taxand, and in particular the equal treatment before tax granted by the French Constitution, and reverse discrimination.
 
The French Administrative Supreme Court now has three months to decide if the question is serious, and transfer to the French Constitutional Court. The latter would also have three months to decide whteher or not the 3% contribution on dividends is compliant with the French Constitution.
 
Since the French constitutional court has the option to limit the application of its decision in – and used this several times in the past – there is a quite a risk that a potential censure of the tax may benefit only to taxpayers who are going before French Courts before the date of the French Constitutional Court decision.
 
Given the six-month limitation period to make an application before the courts after filling a claim before the French Tax Administration, we strongly advise to fill a claim as soon as possible, should it not have been done yet.
 
The litigation team (Roland Schneider, Nicolas Jacquot, Romain Daguzan, Paul Mispelon)
 




 
The challenged compatibility of the 3% tax on dividends regarding the French Constitution
12 Avril 2016
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            [text] => At the request of Arsene Taxand, The French Supreme court has just been asked by an administrative Court about a constitutional question, regarding the compatibility of the 3% tax on dividends to the French Constitution. 
 
This contribution, provided by Article 235 ter ZCA of the French Tax Code, is assessed on all distributed incomes (within the wide meaning of the French Tax Code). It has to be noted that, besides the Constitutional question, the European Commission is currently reviewing this contribution, especially regarding a potential infringement of the EU freedom of establishment.
 
The transmission of the question before the French Supreme Court is based on various arguments developed by Arsene Taxand, and in particular the equal treatment before tax granted by the French Constitution, and reverse discrimination.
 
The French Administrative Supreme Court now has three months to decide if the question is serious, and transfer to the French Constitutional Court. The latter would also have three months to decide whteher or not the 3% contribution on dividends is compliant with the French Constitution.
 
Since the French constitutional court has the option to limit the application of its decision in – and used this several times in the past – there is a quite a risk that a potential censure of the tax may benefit only to taxpayers who are going before French Courts before the date of the French Constitutional Court decision.
 
Given the six-month limitation period to make an application before the courts after filling a claim before the French Tax Administration, we strongly advise to fill a claim as soon as possible, should it not have been done yet.
 
The litigation team (Roland Schneider, Nicolas Jacquot, Romain Daguzan, Paul Mispelon)
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At the request of Arsene Taxand, The French Supreme court has just been asked by an administrative Court about a constitutional question, regarding the compatibility of the 3% tax on dividends to the French Constitution.
 
This contribution, provided by Article 235 ter ZCA of the French Tax Code, is assessed on all distributed incomes (within the wide meaning of the French Tax Code). It has to be noted that, besides the Constitutional question, the European Commission is currently reviewing this contribution, especially regarding a potential infringement of the EU freedom of establishment.
 
The transmission of the question before the French Supreme Court is based on various arguments developed by Arsene Taxand, and in particular the equal treatment before tax granted by the French Constitution, and reverse discrimination.
 
The French Administrative Supreme Court now has three months to decide if the question is serious, and transfer to the French Constitutional Court. The latter would also have three months to decide whteher or not the 3% contribution on dividends is compliant with the French Constitution.
 
Since the French constitutional court has the option to limit the application of its decision in – and used this several times in the past – there is a quite a risk that a potential censure of the tax may benefit only to taxpayers who are going before French Courts before the date of the French Constitutional Court decision.
 
Given the six-month limitation period to make an application before the courts after filling a claim before the French Tax Administration, we strongly advise to fill a claim as soon as possible, should it not have been done yet.
 
The litigation team (Roland Schneider, Nicolas Jacquot, Romain Daguzan, Paul Mispelon)
 
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