French General Tax Code
In forceI. - When the Minister responsible for the budget receives from the Court of Audit the declaration referred to in the third paragraph of article L. 143-2 of the French Financial Jurisdictions Code, it may, by decree issued under the conditions laid down by a Conseil d'Etat decree, suspend all tax benefits for donations, legacies and payments made to the organisation referred to in the declaration. This order will be published in the Journal Officiel.
If this is not the case, it will send a reasoned report to the first president of the Cour des Comptes and to the presidents of the finance committees of the National Assembly and the Senate.
II. - When an organisation, which may be audited pursuant to Articles L. 111-9 or L. 111-10 of the aforementioned Code, is definitively convicted pursuant to Articles 223-1-1, 313-2, 314-1, 321-1, 324-1, 421-1 to 421-2-6 or 433-3-1 of the Criminal Code, donations, legacies and payments made on its behalf may no longer, as from the fifteenth day following the conviction, give entitlement to tax benefits in the future.
III. - 1. With effect from the fifteenth day following notification of the order of the Minister responsible for the budget provided for in I, donations, bequests and payments made to the organisation covered by the order are excluded from the benefit of any tax advantage.
2. With effect from the fifteenth day following notification of the order, the organisation covered by the order shall expressly state in all documents, including electronic documents, intended to solicit donations, legacies, payments and contributions from the public, that these may no longer give entitlement to any tax advantage.
3. With effect from the fifteenth day following its final conviction, the organisation referred to in II shall expressly state in all documents, including electronic documents, intended to solicit donations, legacies, payments and contributions from the public, that these may no longer give entitlement to any tax advantage.
4. Failure to comply with 2 and 3 is punishable by the fine provided for in Article 1762 decies.
IV. - 1. a. On expiry of a period of one year following notification of the order referred to in I, the organisation referred to in the order may submit a request to the Minister responsible for the budget for the reinstatement of the tax benefits for donations, legacies and payments that may be made to it.
b. The referral must be accompanied by all the information required to establish the means actually used to bring the expenditure financed by donations, legacies and payments likely to give entitlement to the benefit of a tax advantage into line with the objectives pursued by this body.
c. The Minister responsible for the budget may repeal the order referred to in I after receiving the opinion of the Cour des Comptes. In the absence of an opinion from the Cour des Comptes within six months of the matter being referred to it, the opinion is deemed to have been issued.
2. a. On expiry of a period of three years following its final conviction, the body referred to in II may submit a request to the Minister responsible for the budget to re-establish entitlement to tax benefits for donations, legacies and payments that may be made to it.
b. The referral must be accompanied by all the information required to establish the means actually used to bring the expenditure financed by donations, legacies and payments likely to give entitlement to the benefit of a tax advantage into line with the objectives pursued by this body.
c. The Minister responsible for the budget may re-establish tax benefits for donations, legacies and payments that may be made to this organisation after receiving the assent of the Cour des Comptes. In the absence of an opinion from the Cour des Comptes within six months of the matter being referred to it, the opinion is deemed to be favourable.
V. - When an auditor of a body mentioned in articles L. 111-9 or L. 111-10 of the Financial Jurisdiction Code refuses to certify the accounts of this body, he sends his report to the Minister responsible for the budget who proceeds in accordance with the conditions set out in I.
VI. - A Conseil d'Etat decree sets out the conditions for application of this article.
VII. - I to VI apply from 1st January 2010.
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