THE GENERAL INTEREST TO THE TAX REDUCTION LINKED TO GIFTS

The Civitas (is generally regarded as fundamentalist Catholic Association) Institute has just been banned by the tax authorities the right to issue tax deduction certificates for donations it receives.

Worse, as the decision of the tax authorities was taken during a tax audit undergone by the association, the latter was fined for  55,000€ corresponding to 25% of donations received.

Without wishing to discuss here the eligibility or otherwise of Civitas to receive donations eligible for tax reduction, let us consider just on the powers of the tax authorities in the matter.

Indeed, the tax reduction applies to gifts made in favor of works of "general interest" engaged in a number of areas namely listed by law.

The problem is that the concept of "general interest" has a side primarily subjective. In addition, the areas of intervention are themselves sometimes elusive, especially their "social", "family" or "cultural.” But when the tax authorities consider on its own as a work is not of general interest or rejects the "social" character advanced by it, it will start to mean that she does not recognize him the right to issue certificates of tax cuts and inflict a penalty of 25% the value of the gift for any certificate issued.

Obviously, the decision of the tax authorities may be challenged before an administrative judge. It is the judge of the tax that have the last word, not the administration. However, an appeal to the administrative courts is long and you must go to the State Council, it may take 10 years.

Meanwhile, the association has had time to put the key under the door and victory, if proved, will be part of a field of ruins. Therefore, it is clear that when the administration truly wants to oppose it considers a work, sometimes in good faith, unworthy of the tax reduction, estimated or unworthy by his superiors, the impugned work does not enjoy equality of arms against it.

This makes the administrative power (or political) will be of the public interest, and therefore arbitrary and not consistent with the full exercise of civil liberties.

Perhaps it would be time to consider a reform of the accreditation process works eligible for the tax reduction, so that the decision no longer falls as tax services or political power but an authority truly independent whose intervention will take place as early as possible.