“Placing a mission of general interest at the heart of your project and not the enrichment of a few does not confer tax advantages” | EUROtoday

Lhe alerts on the monetary difficulties encountered by associations have multiplied lately. Faced with a decline in public subsidies, these buildings have usually persevered by in search of different sources of financing. Some have opted for a mannequin consisting of growing a industrial exercise whose income are re-injected into finishing up missions of normal curiosity. An affiliation which works in favor of medical analysis, for instance, is completely licensed to self-finance it by means of the sale of patents. Allowed, however not likely inspired.

If it’s comprehensible {that a} State in quest of 20 billion financial savings per yr doesn’t have the capability to offer help to a whole sector, no less than it should be cautious to not discourage initiatives in direction of extra 'monetary autonomy. The growth of a industrial exercise ought to subsequently no less than be topic, for an affiliation, to a lenient tax regime.

Indiscriminate utility of European doctrine

However, this isn’t the case: exceeding a threshold of some tens of hundreds of euros in annual income ends in legal responsibility to company tax on the frequent legislation price.

Thus, an affiliation offering free homework assist to youngsters from deprived backgrounds might select to finance this exercise by means of a parallel industrial academic help exercise. But it’s then uncovered to a tax levy on its surpluses, which can additional scale back the funds dedicated to serving to youngsters in problem…

Placing a mission of normal curiosity on the coronary heart of your undertaking and never the enrichment of some subsequently doesn’t confer any benefits: the tax remedy reserved for income supposed to be distributed within the type of dividends is similar as for these that are supposed to finance virtuous initiatives.

It is troublesome to not see behind this rule one more instance of indiscriminate utility of the European doctrine of undistorted competitors. Because, on this story, the French State is guided by its concern of making a distortion to the detriment of business corporations, preferring to desert associations to their destiny – except these that are confined to areas shunned by the market as a result of not very promising, or who go for a industrial positioning which distances them from any prospect of profitability.

A typical good

Is it this concern which additionally results in sanctioning associations whose industrial exercise is insufficiently incidental by purely and easily eradicating them from the favorable tax system for patronage?

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