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French Lawmakers Back Anti-Tax Evasion Bill

Friday, June 28, 2013

During a first reading, the French National Assembly adopted the Government's anti-tax evasion and major economic and financial crime bill, together with the law creating a special financial prosecutor. The bills were adopted by 366 votes to 174 with nine abstentions, and by 332 votes to 177 with 34 abstentions respectively.

The anti-tax evasion bill aims to strengthen the efficiency of the Government's fight against corruption and tax evasion, as part of efforts to redress the public finances and to preserve national sovereignty. It establishes a "tax police" to combat tax evasion and to clamp down on tax offences, to be set up within the new central office for combating corruption and tax evasion.

The text creates an "aggravating circumstance" for the most serious types of fraud, notably tax evasion committed by an organized group, as well as undeclared bank accounts or entities held abroad, such as fiduciaries and trusts. Sanctions include a seven-year prison sentence and EUR2m (USD2.6m) fine. To deal with such cases, investigators will have recourse to "special" investigative techniques, including surveillance, infiltration, and a four-day detention period.

Furthermore, penalties applicable to legal persons for tax fraud will be aligned with those applicable to individuals. As a result, there will be the option in future of confiscating a legal person's entire assets. The Tax Administration's control powers will be strengthened, and the administration will be able to make use of illicit information obtained via judicial or administrative assistance channels.

Finally, the regime for confiscating criminal assets will be reinforced to guarantee the efficient recovery of illegally held sums, which could include life insurance contracts, for example.

Adopted amendments to the bill include plans to fix the maximum fine for a legal entity at a percentage of average annual turnover for the last three years. The fine will be capped at 10 percent for "correctional" matters and at 20 percent for "criminal" matters.

Other agreed amendments include plans to strengthen cooperation between the Tax Administration and the judicial authorities, to delay the start of the limitation period, for infractions involving concealment, to the date when the infraction was actually observed, to increase from three to six years the period in which the Tax Administration may file a complaint for tax evasion, and to extend the jurisdiction of France's special financial prosecutor to include complex cases of value-added tax fraud.

Under the second bill, France's special national financial prosecutor will be responsible for pursuing all complex cases of corruption, embezzlement of public funds, and tax evasion.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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