New setback for the government in the examination of the 2023 budget: the Assembly voted, against its opinion, the restoration in its initial version of the “exit tax”, concerning the tax exile of entrepreneurs.
The partial abolition of this exit tax, introduced in 2011 under Nicolas Sarkozy, was a strong measure of Macron’s first five-year term, in the name of France’s attractiveness.
Fabrice Brun’s LR amendment, which was approved almost unanimously by the opposition, restores the tax on the latent capital gains of business leaders who decide to transfer their tax domicile abroad, in the event of the effective transfer of their assets in France within 15 years of their departure.
In 2018, Emmanuel Macron announced the abolition of the tax, which had been replaced by a device on the transfer of assets, but within two years after the departure of these business leaders.
Return of a tax abolished since 2018
Since this reform, the device is no longer effective, argued the group Les Rpublicains (LR).
For three years our country has again been the most attractive in Europe for foreign investment. There is a positive impact on these reforms, defended his side the Minister of Public Accounts Gabriel Attal, calling not to break something that works.
The MoDem deputy Mohamed Laqhila also asked in vain not to send a bad message to entrepreneurs, like the elected representative of the French abroad Stphane Vojetta (Renaissance group).
But during the vote, won by 155 votes against 133, the MoDem group, a member of the majority, was divided: 11 for, 11 against.
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Favorable to the restoration of the exit tax, the leader of the deputies RN Marine Le Pen called to take stock of the runoff: it did not work. We must draw the consequences. And change the policy that was conducted, according to her.
The left congratulated itself: It is an amendment which gives all its meaning to this tax, according to the socialist Philippe Brun. Once again the government is largely in the minority, welcomed LFI Chairman of the Finance Committee Eric Coquerel.
This setback comes the day after another disappointment for the government, the vote against its opinion of an increase in taxation on dividends from large companies, temporarily increased from 30 to 35%. It’s hot every time, blows a Renaissance parliamentary source.