CSG and CRDS by HMRC

Hello

Getting confused about french CSG and CRDS….so many contradictions

Is a UK tax payer entitled to :

- Claim foreign tax credit relief : Clearly a confusion between article 2 and 24 of the treaty. The first defines what French Tax is (and that includes CSG and CRDS). The second does not (for the purpose of french tax credit relief in the UK…does not make sense at all. 

Also, the French courts ruled many times that CSG and CRDS are indeed taxes. shouldn't be then considered that the have to be credited against UK tax ? I mean 24, 2, c does/t work. they can't limit in 24 the list of french taxes once defined in art 2. 

- or, at the very least, deduct those "taxes" from his taxable income. paragraph 1 says UK tax on french income should be calculated on the same income on which the French tax is calculated….meanwhile the French impot is calculated on Gross-(CSG+CRDS)

 

Anyone has experience of that?

After and prior to 2010 when the New UK/France Treaty entered into force?

thanks !!!

 

for reference: 

Article 2,1,b reads : 

n the case of France, all taxes imposed on behalf of the State or of its local authorities irrespective of the manner in which they are levied on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amount of wages or salaries paid by enterprises, as well as taxes on capital appreciation; those taxes are in particular:

(i) the income tax (l'impôt sur le revenu);

(ii) the corporation tax (l'impôt sur les sociétés);

(iii) the social contribution on corporation tax (la contribution sociale sur l’impôt sur les sociétés);

(iv) the tax on salaries (la taxe sur les salaires);
(v) the “contributions sociales généralisées”;
(vi) the “contributions pour le remboursement de la dette sociale”;

2. This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Convention in addition to, or in place of, the taxes referred to in paragraph 1. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws. 

 

Article 24, 2, c

(c) the taxes referred to in clauses (i) to (iv) of subparagraph (b) of paragraph 1 of Article 2 and, in respect of the taxes mentioned in those clauses, in paragraph 2 of Article 2, shall be considered French tax. 

 

Comments
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this seems a good starting analysis

mhtax |

it is about French Income of a UK tax payer and taxed in the UK

zeutax |

anyone has a clue pls?

zeutax |

not uncommon

mhtax |

p.s.

mhtax |

thx

zeutax |