8: Non-compliance with conditions governing tax benefits

1. Failure by the lessee company or the company receiving the subscriptions to comply with the commitments provided for in the thirty-second paragraph of I of Article 199 undecies B, the last paragraph of I and the second paragraph of II of Article 217 undecies, the second paragraph of A and the second paragraph of 2° of B of VII of Article 244 quater Y at the end of the five-year period mentioned in the twenty-fifth paragraph of I of Article 199 undecies B, in the fifteenth paragraph of I and in the first paragraph of II of article 217 undecies, in the second paragraph of 1 of A of I and in the first paragraph of 2° of B of VII of article 244 quater Y results in the application, at the expense of this company, a fine equal to 60% of the amount of the retrocession that it has obtained pursuant to the twenty-fifth paragraph of I of article 199 undecies B, the nineteenth paragraph of I and II quinquies of article 217 undecies or 5° of 1 of A of I and 3° of 2 of B of II of article 244 quater Y. The amount of the fine is reduced by a deduction equal to the product of this amount multiplied by the ratio between the number of expired years of use of the asset beyond five years and the duration of the commitment to use this asset exceeding five years.

2. 1 does not apply:

a) When the investments operated by the lessee company are sold, if the transferee undertakes to maintain their initial use for the remainder of the period of use. The commitment is made in the deed recording the transfer or, failing that, in a private deed with a date certain, drawn up at the time of the transfer. In the event of non-compliance with this undertaking, the transferee is liable for the fine under the conditions set out in 1 ;

b) When non-compliance with the commitment results from the death of the sole trader or the company's compulsory liquidation or when the tax reduction, or deduction from taxable income, relating to the investments operated by the lessee company has been the subject of a reversal under the conditions provided for in Article 199 undecies B, Article 217 undecies or Article 244 quater Y;

c) In the event of force majeure.

3. The administration notifies the taxpayer in a document of the amount of the fine it proposes to apply and the reasons for the fine. It notifies the interested party of the opportunity to submit observations within thirty days of notification of this document.