Profit-sharing: Xavier Bertrand overrides Dassault

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The senators maintained Monday the tax exemption on the sums paid with the title of the profit-sharing envisaged by the bill on the labour incomes.

Previously, the Xavier Bertrand, Minister for Labour had opposed an end not to receive at the committee of supply and his rapporteur UMP Serge Dassault, which had removed the leading talent of the bill on the Labour incomes whose Senate started the examination Monday in public. ( Finance Information City )

By 195 votes against 145, the senators remained faithful to the text of the government, which aims at doubling in four years the sums distributed to the title of the profit-sharing in France. With this intention, the article 1st of the bill lays down a tax credit of 20% on the premiums of profit-sharing paid to paid and the exemption of an exceptional premium of profit-sharing.

The committee of supply, concerned not to dig a deficit already considered to be excessive, had proposed an amendment aiming at removing this measurement against the opinion of the government, represented by the Minister for Labour Xavier Bertrand. This proposal divided the rows of the majority.

In committee the senators had indeed removed the possibility of creating a tax credit of 20% with the profit of the companies concluding an agreement from profit-sharing. The commission, chaired by the centrist Jean Arthuis, had voted this suppression unanimously estimating that “this device of tax incentive represents a loss of receipts for the State evaluated between 800 million euros and 1,2 billion euros”.

“Considering that the budget deficit for 2009 was going to exceed the 52,1 billion euros already envisaged, and that the national debt would cross the 65% of the GDP thus”, the commission judged “which a new tax expenditure of almost 1 billion euros could only worsen the state of public finances”.

The commission moreover had observed “that the current devices of profit-sharing and participation are already given tax exemptions and social”.

She thus intended “to reaffirm the need for examining with greatest vigilance any new measurement which would come to worsen the national debt”.

“I of course have the proposal formulated by the committee of supply and by you even, Mister the rapporteur” declared Mr. Bertrand by presenting the text in front of the senators. But, “without tax credit we will not make profit more from paid from the profit-sharing, without tax credit we will not double the profit-sharing as we wish it”, launched the minister.

“Today we found a point of balance with the various actors, with the various members of Parliament also, I include/understand feel and the range of this proposal Mr. Dassault” but “it is not possible to retain it”, it insisted.

Mr. Dassault made adopt a second amendment by the committee of supply which envisages to modify the formula of computation of the sums intended for the participation. He proposes a “rule of the three thirds” for this calculation: a third of the benefit versed with would be paid in the form of participation, a third with the shareholders and a third for the investments.

Mr. Bertrand in addition confirmed that the government had deposited an amendment with this project, in order to allow that “all the employees” profit from stock-options or bonus shares when there is in the company.