Tuesday, February 10, 2009

Taxes... where the state does the opposite of what they write ....

Yesterday, Lionel talked about the 100 years anniversary of Libourne’s wholesaler trade union. This 100 years old looks good: this small trade union is close to a bigger one representing Bordeaux. These trade unions defend our interests and lots of energy will be needed to defend our profession in these difficult times and as the tax revenue service even ads more on top…

For example: my company had to take a well known tax advisor (therefore expensive) to defend our contingency system to protect us when prices increase. The reason being that, contrary to what the president and his finance minister have said, the administration has for mandate to change the rules concerning fiscal contingencies wine merchant currently use and which help them delay taxes on benefits in order to preserve capital for a specific time.

In short, the administration seems to feel that the rules of calculation are too vague; instead of rewriting tem and then controlling them, it prefers challenging the current ones, in line with today’s principle and now wants to focus on each vintage. In other words, it would take away from wine merchants the benefits this system gives them!

The principle : « no one can take advantage of its own turpitude » shouldn’t it also be applicable to the state when it concerns taxes…

The tax payment is only delayed, but this cash is useful in times of recession, when our suppliers need to be paid faster and our foreign client request longer terms of payment, especially for export company like ours. These changing rules should not be applied to my company who gets regularly audited. But that’s the way it goes: “we know that you are serious, but too bad, we have orders”.

Too bad for me, I will need to spend more time and money to defend my operation, even though I am hiring and have no intention to lower salaries or relocate.

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