French Government Backpedals On Corporate Tax Policy
There has been a generally underwhelming response from businesses in France about the Government’s long-trumpeted plans to install a 28 percent intermediate rate of corporate tax. Earlier this year, Medef, the main employers’ association in France, slammed the proposal as a “half-measure” that would provide only a modicum of tax relief to a relatively small number of companies, much of which will be offset by the increased complexity and compliance costs brought about by having to account for an additional tax rate. That may be true, but the 2017 Budget could have been a lot worse for taxpayers, especially if the current Government had gone on as it started back in 2011, when it began its life raising tax left, right, and center. Indeed, if it had carried on in that vein, there would have been scarcely anything left untaxed by now. So perhaps French companies should be grateful for small mercies. Not many governments in the history of the world have backpedalled faster on tax policy – and largely for the better – than the Government of President Hollande.
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