July 26th

A meeting was held on Friday, July 26, 2024, at the Villa d’Accueil, between Mr. Laurent Saint-Cyr, member of the Presidential Counsel and Prime Minister Garry Conille, and representatives of business associations. The discussions mainly focused on the new tax code. The objective of this meeting was to allow private sector representatives to request a moratorium on the implementation of the tax code, which is scheduled to take effect on October 1st.

Given the current state of the country, marked by multiple crises, as well as the issues that need to be addressed within the code, it was appropriate to make this request.

Mr. Joseph Paillant presented the results of a study conducted for the business associations regarding the tax code. He began by commending the efforts made and emphasized that the 2022 tax code is necessary, with its implementation representing an opportunity for political transition. He affirmed that the private sector agrees on the need for the country to have a tax code. Mr. Paillant highlighted several favorable aspects among the 410 articles of the tax code and the 242 articles of the procedures manual, underscoring the extensive work that has been done.

However, the timing for implementation does not appear to be appropriate. Numerous tasks need to be completed by the public sector in general, and by the tax administration in particular, to ensure effective implementation of this code. There is still much confusion that needs to be addressed, particularly through the establishment of a taxpayer charter, which has not yet been done, and through an adequate period for adaptation. It would be advisable to issue a decree for the interpretation of each tax field and to train all state personnel across the country.

The private sector is therefore requesting a delay of the tax code’s implementation to assess the impact of other branches of law, notably the Civil Code, the Labor Code, and business law, on the tax code. Furthermore, the following points were raised:

• The elimination of rights allowing the Ministry of Commerce to exert certain control over the business sector (CIP, Operating Rights).
• The omission of tax provisions included in the Law on Financial Institutions and the Law on Development Financial Companies.
• The absence or omission of the Nomenclature of Economic Activity Sectors included in all tax legislation, necessary for statistical and National Accounting purposes.
• The confusion between the National Identification Number (CIN), the Tax Identification Number (NIF), and the Tax Registration Number (Matricule Fiscal).
• The persistence of the tax schedule back to September 2005, despite inflation and exchange rate fluctuations.
• The exclusion of individuals from real estate investment, despite the housing crisis.

In conclusion, we propose the creation of a commission to review the Tax Code and an extension of the implementation date.