Key Benefits:
Publics concerned: organizations benefiting from tax benefits and targeted to theArticle L. 111-8 of the Financial Courts Code.
Subject: application of the law of 30 December 2009 of rectificative finances for 2009 (art. 20); procedures for the application of the suspension procedure for the benefit of the tax benefits attached to donations, bequests and payments made for the benefit of certain organizations.
Entry into force: immediate.
Notice: the decree sets out the procedures for the application of the new article 1378 octies of the General Tax Code initiating a procedure to eliminate any possibility of indirectly benefiting from public funding, particularly in the context of the patronage, for organizations receiving donationsArticle L. 111-8 of the Financial Courts Code and having been the subject of either a review by the Court of Auditors following which the Court found that there was no compliance with the expenses incurred to the organization's objectives, either a refusal to certify the accounts by their External Auditor, or a final criminal conviction for fraud or an abuse of confidence.
It also provides the conditions under which the Minister responsible for the budget may suspend and restore the benefit of any tax advantage attached to the donations, bequests and payments made to the organizations concerned.
References: the new provisions of this Decree may be consulted on the website Légifrance (http://www.legifrance.gouv.fr).
The Prime Minister,
On the report of the Minister of Economy, Finance and Industry and the Minister of Budget, Public Accounts, Public Service and State Reform, Government Spokesperson,
Vu le General Tax Codeincluding article 1378 octies;
Vu le Financial courts codeincluding article L. 111-8;
Vu la Act No. 79-587 of 11 July 1979 amended on the motivation of administrative acts and the improvement of relations between the administration and the public;
Vu la Act No. 2000-321 of 12 April 2000 amended on the rights of citizens in their relations with administrations;
The State Council (Finance Section) heard,
Decrete:
After section 310 G of Schedule II to the General Tax Code, a title V is inserted as follows:
« TITRE V
"Communications to ICTY I, II and IV
« Single Chapter
"Suspension of the tax benefits attached to donations, bequests
and payments for certain organizations
« Art. 310 G bis.-When, in application of provisions of Article 1378 octies of the General Tax Code, the Minister responsible for the budget envisages suspending the tax benefits attached to donations, bequests and payments made for the benefit of an organization, informs the agency, by registered letter with request for a notice of receipt.
"The organization has a period of thirty days to present, if any, the person of his or her choice, his or her written comments and, at his or her request, his or her oral observations.
"In the light of the elements of the file and, where appropriate, the comments made, the Minister responsible for the budget shall have a period of six months from the receipt of the statement or report provided to the Minister responsible for the budget, I and V of Article 1378 octies of the General Tax Code to decide whether to suspend or maintain the tax benefits referred to in the first paragraph.
"The suspension order specifies the reasons for the decision taken and the conditions under which the organization may file an application for the recovery of the tax benefits suspended. It is notified by registered letter with request for notice of receipt.
"The decision not to suspend the tax benefits referred to in the first paragraph is notified by simple letter.
"Art. 310 G ter.-The application referred to in 1 and 2 of the IV of Article 1378 octies of the General Tax Code for the recovery of the tax benefits attached to donations and bequests is addressed to the General Directorate of Public Finance by registered letter with a request for a notice of postal receipt.
"This application is forwarded, within one month of its date of receipt, to the Court of Auditors for notice.
"Art. 310 G quater.-When the Minister responsible for the budget restores the benefit of the suspended tax benefits, his decision shall be notified to the organization by simple letter within three months of the receipt of the notice rendered by the Court of Auditors or, where applicable, from the expiration of the six-month period referred to in IV of Article 1378 octies of the General Tax Code.
"The decision repealing the suspension order in the fourth paragraph of Article 310 G bis is published in the Official Journal of the French Republic.
"Art. 310 G quinquies.-When the Budget Minister rejects the application for the recovery of suspended tax benefits, the reasoned decision shall be notified to the Agency, by registered letter with a request for notice of postal receipt, within three months from the receipt of the notice by the Accounts Court or, where applicable, from the expiration of the six-month period provided for in the IV of Article 1378 octies of the General Tax Code. »
The Minister of Economy, Finance and Industry and the Minister of Budget, Public Accounts, Public Service and State Reform, spokesman of the Government, are responsible, each with regard to it, for the execution of this decree, which will be published in the Official Journal of the French Republic.
Done on 20 May 2011.
François Fillon
By the Prime Minister:
Minister of Economy,
finance and industry,
Christine Lagarde
Minister of Budget, Public Accounts,
public service and state reform,
Government spokesperson,
François Baroin
