Decree of application 2016, June 9th
In order to facilitate dialogue with businesses, the2015 Amending Finance Law created a competent advisory committee on disputes relating to the eligibility of certain research expenditures.
Decree 2016-766 of 2016, June 9th specifies protocol of the advisory committee for the CIR. The latter can give its opinion in the event of a persistent disagreement between the administration and the corporate taxpayer regarding rectification proposals as from 2016, July 1st.
In the context of an adversarial rectification procedure, where dispute persists between the administration and the taxpayer relating to the actual allocation and capping of the expenditure taken into account for the determination of the tax credit (CIR), the taxpayer may seek the advice of the new advisory committee. The plaintive will have 30 days to respond to observations as of the official reply date of the administration in order to submit its claim (LPF Article L. 59-1, paragraph 1).
Chaired by a State Councilor, the committee is composed of a tax administration officer and, as the case may be, a delegate from the Ministry of Research and/or a delegate from the Ministry of Innovation, and/or an expert with the necessary technical expertise (CGI Art III 350 new CA). It holds all the documents on which the administration relies to support its position as well as the claimer’s answers. The taxpayer, his counsel and the officials who took part in the corrections may be heard at the meeting. The taxpayer has the right to consult the report of the administration and all documents referred to in support of the taxpayer’s case.
The committee may receive information from the tax administration, the Ministry of Research and the Ministry of Innovation, to enable it to settle de matter at hand. The taxpayer must be convened at least thirty days before the date of the committee meeting. This notice may be sent by any means, including by e-mail (Rule 60 (1) amended.
Before the meeting, the committee may request the services of the Ministry of Research or the Ministry of Innovation for a complementary report of technical expertise on the research expenditure qualification. This report shall be communicated to the taxpayer and to the tax authorities within a reasonable period of time before the meeting (Rule of Law R 60-2 B new).
The committee may, at the request of one of its members, hear any official who has taken part in the classification of the expenses taken into account for the determination of the tax credit within the realms of the disagreement or, in the case of absence or transfer, his successor or substitute (Rule R 60-2 A, as amended). The taxpayers concerned are also invited to be heard or to send their written observations (Renewed Orders, R 60-1 B new).
The committee, which acts as an advisory body, formulates a notice which is relayed by the administration to the taxpayer. The latter shall at this stage inform the claimer of the figure it intends to retain as the amount of tax credit (Rule 60 (2) amended). These provisions shall apply to proposals for rectifications addressed as from 2016, July 1st.