2007 Finance Bill and Finance Amendment Bil for 2006 : 2007, a paradoxical year for tax rules

Due to the elections in France, the 2007 Finance Bill and Finance Amendment Bill for 2006 generally provide only slight adjustments to regimes or reforms implemented during past years. Nevertheless, there are noteworthy changes which impact individuals, companies and small businesses, including participation exemption regime extended to capital gains, new thin capitalization rules, capital gains on disposal of securities, wealth tax, tax credit for investments in small businesses, R&D tax credit, computation of fourth corporate income tax instalment, tax treatment of acquisition expenses on controlling interest, adjustments to tax consolidation regime to encourage employee savings plans, amendments to tax consolidation regime - neutralization of 5% share of expenses on intra-group capital gains resulting from disposal of qualifying controlling interest, amendments to anti-abuse provision regarding interest deductibility - Charasse amendment, and tax incentives for small businesses.