Deadline for income tax returns is fast approaching.
FRENCH homeowners living in Guernsey are being warned that the deadline for income tax returns is fast approaching.
Islanders with second homes in France must return their forms by 30 June.
Any failure to do so may lead to penalties and assessments in different areas.
PKF Guernsey Ltd’s French tax service manager Virginie Deflassieux said: ‘The absence of any double-tax agreement between France and the Channel Islands means that Guernsey residents are liable to pay French income tax in respect of their French property.’
The taxable income in France is calculated as three times the annual unfurnished rental value of the property and the tax is due whether the property is let or not.
The charge applies whether the property is owned directly or indirectly, but it may be possible to obtain an exemption.
‘To establish their individual tax position, those people in that situation need to disclose all their worldwide sources of income and calculate the French income tax liability as if they were full-time residents of France,’ said Ms Deflassieux.
French taxation on a notional income basis will be abolished only if and when double taxation agreements are put in to place between the jurisdictions concerned and France.
The terms of these agreements would have to be acceptable to the French authorities and they would need to contain adequate exchange of information provisions.
Article posted on 14th April, 2008 - 12.45pm
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