Deduction at source: the moment of truth

This is the moment of truth for the reform scope by Gérald Darmanin, minister of the public Accounts. After pensioners, the unemployed and the self-employed, th

Deduction at source: the moment of truth

This is the moment of truth for the reform scope by Gérald Darmanin, minister of the public Accounts. After pensioners, the unemployed and the self-employed, the deduction at source, in force since 1 January, has become as early as Friday a reality for some employees in the public and private sectors. "The first pay slips collected the amount of tax start to arrive," announced Friday on Twitter the public finances general Directorate (DGFIP), which reminds us that France has 25 million employees, the public and private sectors combined. Among these employees, 11 million are not taxable and will not change compared to the salary that was previously paid. Therefore remain 14 million French, who will be facing for the first time at this pay slip generation.

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"This is a very important step" but "there is no reason for it not happening as well as the previous ones," assured the director general of public finance Bruno Parent during an intervention on Facebook. According to Bercy, 10% of employees in France receive their salary on the 25th of each month. Others get in a staggered manner in the following days, a vast majority being paid in the end of the month.

Until here, all goes well

The payment of wages has often been presented as the crucial step for the reform of the levy to the source, who has the fear of bugs and errors in taxpayers, but also among companies, which is now responsible for collecting the tax. The tax administration has however sought in recent days to defuse this step, ensuring that 30 million related to the tax at the source had been already performed without a hitch in particular. "We have no known problem" in the course of these operations, has assured the minister of the public Accounts, which had defended against winds and tides of the reform when Emmanuel Macron had been issued during the autumn of doubts about its feasibility.

at the Beginning of January, the income tax was levied for the first time on the retirement pensions, unemployment benefits, and for employees of firms engaged in the offset of payroll (salary of December paid in January). On 15 January, the instalments of taxes due by the merchants, artisans and liberal professions that have been collected. At the same time, the tax administration has paid down-payments on tax credits to some 8.8 million French.

A strengthening of the administrative capacity

If so far everything seems to be pretty well spent, this Friday is for the government and the tax officials the beginning of real large scale test. Since a few days, the French are showing concerns and the general Directorate of public finance has had to deal with a large flow of calls and emails from taxpayers. These past three weeks, the operations have resulted in multiple solicitations, with a large number of calls on the telephone line dedicated to the reform (0 809 401 401). In fact, the tax administration has had to deploy reinforcements, with 200 and then 500 additional officers in the 14 "contact centres" set up by the government.

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At the counter, the stresses are, in contrast, remained more limited, despite a spike of attendance at the beginning of January. According to Bercy, nearly a million users have been received since the January 2, compared to 5.4 million during the last campaign statement of revenue, dating back to the month of April.

Notice of strike filed by the agents of the fisc

The unions say they expect a surge of demands with the arrival of wage slips, however put in the custody of the government, ensuring that the success of the reform could not be assessed until several weeks later. "To say that everything is going well" is "premature," said Alexandre Derigny, deputy secretary general of the CGT public Finances. "This may clog the machine, it is not so much a big bug that the accumulation of small problems", he explained. The CGT, which denounces since the beginning of January a "work overload" especially in call centers, filed jointly with the trade unions Force ouvrière and Solidarity-based finance public notice of strike action from 28 January to 15 February.

Updated Date: 27 January 2019, 00:00

Kathleen Lees


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