Lexicon

A

Assessment (liquidation)

Computation of tax by applying a rate or scale to the assessment basis.

Assessment basis (assiette)

- Rules or operations used to determine the elements (profit. turnover. etc.) liable to taxation.
- Elements used to work out the tax due.

Assessment list (rôle)

List of taxpayers indicating the amount of tax they have to pay

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B

Body corporate (personne morale)

Group that has its own legal status (i.e. legal entity).

Bond (obligation)

Interest-bearing transferable security issued by a company or public authority in return for a loan

Budget (Budget)

- All laws making provisions for and authorizing the State’s annual revenue and expenditure.
- All accounts recording all the State’s resources and expenses for a calendar year.
- All accounts recording all appropriations of a ministry for a calendar year.

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C

Collection (recouvrement)

Synonym for recovery. This is the process by which a tax debt becomes certain on a given date.

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D

Deed under private seal (acte sous seing privé)

Private written deed bearing the written signatures of the parties.

Deduction (déduction)

Amount subtracted from gross profit or income.

Dividend tax credit (avoir fiscal)

Fraction of corporation tax already paid by a company on dividends paid to its shareholders.
The dividend tax credit is equal to 50 % of the net dividend distributed to individuals and companies eligible to the parent company regime, 15 % in all other cases. It is added to the shareholder’s taxable income and its amount is deducted from the tax chargeable to the shareholder in order to avoid economic double taxation borne by distributed corporate profit. Subject to the provisions of double taxation agreements, only residents of France are entitled to dividend tax credits. The whole system of dividend tax credits has been phased out with effect from 1st January 2005.

Domicile for tax purposes (domicile fiscal)

A person is deemed to have his or her domicile for tax purposes in France where he or she is in at least one of the following four situations:
. His or her home is in France;
. His or her main place of abode is in France;
. He or she carries out a professional activity in France which is not incidental;
. His or her centre of economic interest is in France.

The following persons are also deemed to have their domicile for tax purposes in France: State civil servants on duty or assignment in a foreign country and not subjected therein to personal taxation on their total income.

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E

Exemption

(1 exonération)

(2 franchise)

Release from obligation of tax under certain conditions determined by law.

Technique consisting in not collecting tax when the theoretically due amount or turnover does not reach a minimum figure.

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F

Furniture (meubles meublants)

Objects used to decorate and furnish a flat or house.

[ I

Income splitting system (quotient familial)

System to make income tax proportional to the number of persons forming the tax household. It consists in dividing the taxable income of the tax household concerned by the number of "shares" or "parts"; such number depends on the situation of each taxpayer and the number of persons deemed to be his or her dependants for tax purposes.

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M

Main home (résidence principale)

Home where the taxpayer usually lives.

N

Notice of "non-taxation" or "taxation not collected" (avis de non imposition ou d’imposition non mise en recouvrement)

Document sent to the taxpayer who has filed a tax return and has no income tax to pay (because the total taxable income is below the threshold of taxation).

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P

"Payability" (exigibilité)

Right that the Treasury may assert from a certain date in order to obtain from a debtor the payment of the tax due.

Person liable (redevable)

A person liable to tax is responsible for its payment.

Property ( patrimoine)

All assets belonging to an individual or a body corporate.

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R

Reduction (réduction)

Tax relief.

Rental value (valeur locative)

Rent which a real property would produce if it were rented out. A difference is made between land registry rental value. determined by the authorities either on completion of the premises or on periodic updates. and actual rental value which corresponds to the market price

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S

Share/stock (action)

Transferable security issued by a joint stock company. representing any of the equal portions into which the capital of the company is divided.

Scope (champ d’application)

All assets. activities. situations or transactions covered by a tax provision and the limits of effect of this provision in space and time.

Statute of limitations (prescription)

Time limit beyond which no legal action may be taken.

Subjected person (assujetti)

Person liable to taxation (e.g. VAT)..

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T

Tax credit (crédit d’impôt)

Debt claim on the Treasury.

Tax household (foyer fiscal)

The household is the place where the person or persons concerned have their main place of abode. i.e. the usual home. provided that this home (in France) is permanent.

The tax household is the basic family entity for which income tax is determined.

Tax notice (avis d’imposition)

Document containing the assessment basis information needed to work out the amount of tax due, the amount to pay, the terms and methods of payment and the recovery date.

Tax relief

- 1 allowance (abattement)

- 2 Reduction (décote)

- 3 Repayment (dégrèvement))

Lump sum deducted from the assessment basis.
Reduction of the amount of tax theoretically due.
Tax refund.

Taxable (imposable)

Tax situation of a person or transaction who or which. by his or its activity or nature falls within the scope of the tax system.

Taxable event (fait générateur)

The event that triggers taxation from a legal point of view.

Taxpayer (contribuable)

Person who directly bears the burden of taxes and duties and the collection of which is authorized by law.

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Published on 02/05/2014

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