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Independent Financial Adviser est. 1988
French and Spanish Mortgage Brokers
French Tax Planning Specialists

Breaking news regarding 2016-2018 Prelevements Sociaux

Thursday, 25 April, 2019


Last year we published a bulletin on developments in the ongoing saga of appealing the Prélèvements Sociaux (“PS”) charge levied under French legislation which was effective from January 2016 through to the end of 2018.
This bulletin described the outcome of the Nancy Court of Appeal (“CAA”) judgement 17NC02124 and led to us making appeals on behalf of our clients who paid the charge in 2016.
At the time, the CAA decision was to be appealed to the Conseil D’Etat (the French Supreme Court) by the French Treasury, whilst the CAA themselves referred a question to the Court of Justice of the European Union (CJEU) regarding the nature of two types of social benefit being financed by part of the PS levy.
The case before the Conseil d’Etat has been deferred until the CJEU decision is made.
Last month, the CJEU published its answer to the CAA query, concluding that the benefits questioned fell within scope of European Social security Law and that consequently, those elements of the PS contribution applied to such benefits are recoverable if the person charged is subject to the Social Security legislation of another EU or EEA member state.

Whilst the CJEU judgement (C372/18) was reserved to addressing the particular question raised by the CAA, the implications of this judgement are:

a). That the case before the Conseil d’Etat will now be able to progress, (unless the Treasury withdraws its appeal)

b). That the case made for our 2018 appellants is strengthened both in respect to the particular components of PS directly addressed by the CJEU case as well as the line of reasoning adopted by the CAA when assessing the link between PS more generally and the benefits financed by them.

c). The chances of a successful outcome to these appeals,  as a result of CJEU and CAA decisions, are substantially enhanced.
For those of our clients for whom we have already made an appeal we will be forwarding the CJEU judgement to the relevant tax offices in order to further progress the files.
Meanwhile, although the recovery deadline for those who paid PS in 2016 is now passed, there is time still for those who paid it in 2017 and 2018 to submit their appeal if they qualify.
The deadline for those having made payments in 2017 is, however, the 31st December 2019. I.E. the end of this year.
From the end of June  – following the end of the tax declaration season -  we will be preparing, submitting and administering appeals and so invite enquiries from today.  For an information pack please contact our tax administrator – Simon Heath – via email: tax@charleshamer.co.uk or by phone on 01844 218956