Article 787 B of the CGI provides, under certain conditions, exemption from transfer taxes free of charge, up to 75% of their value, units or shares of a company with an industrial, commercial, craft, agricultural or liberal Inherited or inter vivos ( “covenants Dutreil”).
The shares concerned must in particular have been a collective undertaking to retain taken in principle by the deceased or donor, heir or legatee with other partners.
Transmission of securities to be made before the end of this undertaking, which can not itself be a period of less than two years.
Senator Claude Nougein believes that “this device does not fully meet the problems posed by the transfer of a business.
““Firstly, it is difficult to assess a family business and, in uncertainty, tax authorities tend to consider that the existence of a partial exemption justifies maximum evaluation. Secondly and most importantly, the combination of transfer duty, even lowered, and the solidarity tax on wealth created in some cases – including one of the most dynamic companies – a situation where the heirs or donees are required to surrender their units unable to meet their tax obligations. Indeed, only one of the heirs or donees who took over management of the company sees its shares be exempted from tax on capital; the other, since the company is sufficiently valued, are subject to an annual tax whose rates are now much higher than that of inflation, which is in addition to transfer fees. The heirs or donees medium business growth – specifically those known insufficient place in the French economic fabric – are so often driven by the combined weight of levies opt for the sale of the company to a larger group or an investment fund, which can sometimes be catastrophic for rural areas. “
Very often, this sale results in the transfer of decision center to a large French or foreign economic center, which has not, by definition, a sense of social and local responsibility which is that of a family business.
It considers that this tax leads in many cases to shifts or job cuts, with serious consequences in terms of regional balance. Accordingly, and to help overcome these difficulties, Senator offers an option for a “reinforced Dutreil pact” which would add to the current device.
This enhanced pact would be characterized, first, by a complete exemption of any inheritance rights and, secondly, in return, in longer periods of detention of the company’s shares, which would total worn Eight years.
In practice, the senator proposes to insert before the last paragraph of Article 787 B of the CGI the following three paragraphs:
- “The exemption in the first paragraph is increased to 100% if the following additional conditions “
- “The term of the collective commitment mentioned in the first paragraph is a minimum of three years;“
- “The length of individual commitment mentioned in c is a minimum of five years. “