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Taxes Question

Posted by unbelievable - Created: 16 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by MikeP-180526 - 16 years ago

SEEKER

Thank you for devoting your time to this!  I am going to run the figures through the website again. 

I have not accidentally marked 'parent isole' and as far as I can see the declarations are correct and honest - because I agree with you about how they check.   The wheels grind slowly, but very fine!  I discovered this to my cost some years ago when a mistake was made (by the Impots) in my case as I was 'non resident' for tax purposes but had continued to file with the local office who did not advise me that NR was dealt with in Paris.  So the nice peope in Paris,  who did not receive my declaration, decided to issue a TDA against my bank account (which in real terms means they whip the money out of your account!) and sent a garnishee order to my employers.  It took months to sort it all out,  they did finally agree that they were wrong,  and refunded me the money in full plus my out of pocket expenses.

Thaks again.  I am going to look into the figures and I'll let you know.

Cheers

MIKE

 

 

 

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Posted by Seeker-184579 - 16 years ago

MikeP,

Out of curiosity, I've just tried the government site to simulate the tax cases of a married couple with one child, versus 2 single people and 1 child, and I do come out with slightly less tax to pay in the case of the married couple, which is exactly what I would have expected. 

In my totally hypothetical example I used incomes of €60000 & €40000 respectively.  The result was €15872 tax to pay in the case of the married couple with 2.5 parts, and €16141 to pay (combined total) in the case of the unmarried couple with 1.5 parts + 1 part. There must be something else in your case that is giving you the opposite result.  Are you sure you're not declaring yourself as a parent isolé by mistake (which would give you an extra demi-part)?  You can't do that unless you are truly living alone with your child.  Just a thought....

Re: your comment about 'the locals' accepting a marraige abroad, I'm sure they would, but only on condition that that is how you are registering your état civil in France for all other administrative matters.  I think they'd take a dim view of it if you declared yourself married for inland revenue purposes and unmarried for social security purposes (or whatever), for example. Equally, I get the feeling that they'd expect your partner to be declaring herself as Mme X<insert maiden name>, Epouse Y <insert married name> - at least that's how the tax people (and many other French authorities) would normally address and recognise a married woman.

Lastly, re: your initial question about documentation, I read that the tax office don't expect you send any in with the tax return (as Legend says) - this is since they have been encouraging declarations over the Net, but they do reserve the right to ask you for proof of anything at any time. I personally think you have to be cautious here because they do check up and cross-reference things quite efficiently in the long run (I once received a redressement notice 2 years after ommitting to declare some bank interest).

Hope this helps.


Seeker

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Posted by legend_in_my_lunchtime-182603 - 16 years ago

I have never heard of certificates required for marital status (either getting married or getting unmarried).

Basically, the declaration has the legal weight of an "attestation sur l'honneur" so you had better not lie. 

Once you make your first declaration you are in the system with whatever status you declared.  Then if your status chages, you need to do 3 declarations in the year of change.  1 joint for the combined period and 1 for each of you for the single period.  No certificates are required, just a personally signed declaration which will necessarily specify the date of union or the date of separation.

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Posted by MikeP-180526 - 16 years ago

Thank you both for your replies.

SEEKER:

We live together, if we claim under scenario 1 :

quote:Myself, unmarried, with me (as the higher earner) claiming for our child to get the extra 'part'.  PLUS my partner, filing separately as unmarried, no dependant.

I get 1.5 'parts' and my partner 1.

If we claim under scenario 2 I get 2.5 parts (married+1 child).  This is why it seems illogical that doing the computation produces a significantally higher tax liability.  I did it twice on two different websites (one government, one external) and got the same answer to withn 100 Euros.

Theoretically we could claim as married as I have documentation from another country proving that we are - don't know if the locals would accept it!

HUMPTYDINGO

I think one has to be a European national,  not necessarily French, for a PACS.  I say this because I know a couple who are 'PACSed', one is European Union (non French),  one is not even European.  They happen to be a gay (male) couple but I think that is irrelevant.

 

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Posted by Humptydingo-180377 - 16 years ago

Also, as I understand it, to enter into a PACS, one of you must be a French National.

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Posted by Seeker-184579 - 16 years ago

MikeP,

No, that doesn't seem correct.  Assuming that you're all living together, you can only claim an extra 'demi-part' for your son. 

Theoretically, in the case of one child, the tax should work out broadly the same whether married or not. The tax advantages of being married or joined by a 'PACS' kick in with a second child.

Furthermore, you can only claim as 'married' if you have entered into a 'PACS' and even then, since 2000, independent tax returns are required and will be treated as such for the first 3 years.


Seeker

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Posted by MikeP-180526 - 16 years ago

If anyone here is up to speed with French tax,  they may be able to throw some light on this. 

My partner and I have an 8 year old son. 

We both work.  We have two possible logical ways of filing our tax.

Myself, unmarried, with me (as the higher earner) claiming for our child to get the extra 'part'.  PLUS my partner, filing separately as unmarried, no dependant.

2) We can claim as married and get 2.5 parts.  This way we pay substantially MORE tax than if we file separately as above. 

Does this seem correct?  Our salaries are average, nothing fancy.

 

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Posted by Seeker-184579 - 16 years ago

I've checked the French inland revenue site and my tax form notes and believe the answer to be no.

If you did get married in 2002, however, firstly 'congratulations' and secondly, you need to submit 3 tax returns, one each for the period that you were single, and one joint one for the remainder of the time.

Hope this helps.


Seeker

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Posted by unbelievable - 16 years ago

thanks!

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Posted by sheila bardon - 16 years ago

Only if you married during the 2002 tax year. I think!sheila