Question 34707 — income tax

Summary

Mr. Mohamed Laqhila draws the attention of the Minister Delegate to the Minister of the Economy, Finance and Recovery, responsible for public accounts, to the system for imputation of long-term capital losses for companies subject to income tax. When the compensation between long-term capital gains and capital losses reveals a net long-term capital loss, this is attributable only to the long-term capital gains term carried out during the following ten financial years, never on ordinary profit or overall income. The second paragraph of 2 of I of article 39 quindecies of the CGI provides that, in the event of liquidation of a company, the excess of long-term capital losses over long-term capital gains may be deducted from the profit of the liquidation exercise within the limit of the existing relationship between the tax rate of long-term capital gains applicable to the capital loss realization exercise and the normal rate provided for in the second paragraph of I of Article 219 applicable to the liquidation exercise. These calculation methods are particularly unfavorable for companies whose business is valued as assets and which cannot find a buyer. Indeed, in this hypothesis, the disappearance of the tangible and intangible elements of the fund generates, most of the time, long-term capital losses that the business manager can only partially offset, by applying these provisions of the general tax code. If we take the example of a company subject to income tax which ceases its activity and achieves an operating profit of 18,000 euros before taking into account an exceptional charge on capital transaction of 19,000 euros which corresponds to the disappearance of the capital fund. trade and generates a long-term capital loss of equal amount, i.e. an accounting deficit of 1,000 euros: when determining the tax result, this capital loss will only be effectively deductible up to 19,000 euros x 45.71% (12.80 / 28%) = 8,685 euros. The balance of this capital loss will be subject to a net reintegration of 10,315 euros (19,000 euros - 8,685 euros), i.e. a taxable result of 1,000 euros - 10,315 euros = 9 315 euros. In addition, this tax result supports social contributions even though it corresponds to the restatement of an accounting loss for the company. Paradoxically, if the company is sold and this sale allows the realization of a capital gain, it can benefit from the provisions of articles 151 septies of the CGI which allow it to see its long-term and short-term capital gains fully exempt from tax and charges. social. Due to the current health crisis, which is coupled with an economic and social crisis, many companies are likely to cease their activity without a buyer. The loss of their assets will then only be partially taken into account when calculating the business manager's taxable income. Faced with these situations, he questions him about the measures he intends to take to avoid this “penalization” which will result from conditions economic losses suffered.

Machine translation from French. The official text remains authoritative.

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