Search Sort Posts:  Oldest to newest Newest to oldest

13/05/2008, 9:26 Russethouse Joined on 23/08/2004 Forum Moderator Posts 10,144 Re: Exchange rate for Tax purposes I just hope all you people who have 'asked the tax office' at least have the name of the person you spoke to and have recorded the date and time and ideally a reference number? It's no great surprise that you will need this info so you just record the rate each time and average it, that is not only fair but supportable, and my experience of dealing with tax offices, that is what they look for. I believe www.xe.com has a facility where you can go back to past exchange rates if you need to. www.quimperclub.org 99    Report

13/05/2008, 9:38 allanb Joined on 04/09/2006 Posts 601 Re: Exchange rate for Tax purposes  Jay wrote: ...why then does the tax department use an annual figure? In order to save people's time, some tax departments (maybe all, I don't know) say they will accept a rate of X in lieu of a whole lot of calculations.  They do not say you have to use X.  You can do the exact computation if you want: it happens to suit me, becase I do the calculation anyway for other reasons. Are you saying the tax office is not aware of the fluctuating exchange rate/weak pound and would question every return where income has dropped? Please don't misquote me, I didn't say that.  I'm talking about the likelihood of being selected for audit.  Anything that looks even a little bit strange may cause them to select particular returns; I don't know what principles they use, and for obvious reasons they don't publish them. I should add that as far as I know the probability of an audit is really very low, but it's said to be quite unpleasant if it does happen. ...surely there is only one possible figure; if you are right then you are right! What other possibilities are there?  In foreign exchange there are always different possibilities; there is no such thing as the exchange rate on a particular day.  For that reason even the legal definition is not precise.  What we're talking about here is the question of what is an acceptable approximation ("acceptable" = acceptable to your tax inspector.)  Tax inspectors know the law, but they have some discretion.    Report

13/05/2008, 9:43 Ron Avery Joined on 29/11/2004 Aveyron 12 Posts 3,393 Re: Exchange rate for Tax purposes  Jay wrote:  Ron Avery wrote: Like many others I have calculated the average rate and we all know that using 1.363€ is just not correct, but if you really believe that is the official rate and that the tax office understood your question, go ahead and underpay your tax, sociale charges and CMU.. Like Bob, I also enclose my P60 with the return as I was asked to do so by the lady in the office, I assumed it was something to do with my being taxed in the UK because, as you point out Ron, there is no requirement to do this. You seem to be getting a bit hot under the collar on this one Ron! No I'm not jay, I just object to the opinion of one tax official who is clearly in error being bandied about as "Official" just as the French News figure was also seized on as "official" because it suited people.   If the boot was on the other foot how many would have meekly accepted this rate as gospel?  The truth is the rate should be the prevailing rate when the interest was received and I endorse all that Allan has stated, but there are other possibilities, if you receive annual interest the year end figure is correct, if you get interest monthly you should use the prevailing rate or a mean average or a weighted average, a mean average will mean a slightly higher rate than a weighted average as most of the fall in the value of the £ was in the second half of the year.  The chances of getting a check are small unless you are claiming large refunds for heating, solar etc but at least using a calculated figure based on monthly rates can be justified far better than the woman at the Ruffec tax office told me but I did not mention it was for income received throughout the year. Why not post a sensible answer, people will appreciate it more    Report

13/05/2008, 9:54 ErnieY Joined on 05/12/2006 W of Cahors (46) Posts 4,156 Re: Exchange rate for Tax purposes You can get have a pretty accurate stab from the currency chart on HiFX. For the pedants you can get a precise rate for any day if you so wished.  As depressing as it looks 1.42 would seem to be a fair average for the year as a whole.   My doctor said one drink per day, I can live with that !    Report

13/05/2008, 9:58 Jay Joined on 26/09/2007 Posts 91 Re: Exchange rate for Tax purposes  Russethouse wrote: It's no great surprise that you will need this info so you just record the rate each time and average it, that is not only fair but supportable, and my experience of dealing with tax offices, that is what they look for. Fair it may be but are you seriously suggesting that every time you have money coming into France you record the amount and exchange rate? Many people have income on an irregular basis in the UK and use bank transfer. The rate changes daily. What about people that trade on eBay for example, and lots do, and put down that income for tax (and lots don't). Say you buy and sell one piece of equipment a day, add to that other income from the UK, rents, pensions, savings etc., you are talking masses of paperwork. It may be OK if you have a simple , single monthly income but otherwise it would be a real chore. You say you have lots of experience with tax offices, are you talking about France or the UK? If it is the UK then you would not have any problems with the exchange rate in any case.    Report

13/05/2008, 10:19 Ron Avery Joined on 29/11/2004 Aveyron 12 Posts 3,393 Re: Exchange rate for Tax purposes Jay You are now talking about income that is not even taxable in France. You don't normally transfer large amounts of £s to France, it comes as euros and if it is from capital its not taxable in France anyway. What is at issue here is the euro value of £s received as income from rents and interest, so its really quite simple, its the value on the date it was credited to your account, that is what you declare.  Income from eBay is no more taxable in France than money made selling a car or a lawnmower or at a boot fair.  Unless its your business and you buy and sell to make a profit.  I have sold stuff at a loss on Ebay so can I count that against tax?  Of course not. Why not post a sensible answer, people will appreciate it more    Report

13/05/2008, 10:21 milkeybar kid Joined on 06/03/2007 Posts 79 Re: Exchange rate for Tax purposes We have just returned from Trésorerie at Agen 47 on another matter but while there asked if they new the official rate to use for the Tax forms to show bank interest -we showed paperwork that made it clear it was Uk bank interest. They also phoned The Impôt for double confirmation as they understood our concern , I have the figure in writing and signed for,there official figure they said to use was 1.36.    Report

13/05/2008, 10:27 Catalpa Joined on 23/08/2004 Southern Manche - 50 Posts 1,537 Re: Exchange rate for Tax purposes Our tax office in southern Normandie told me to use 1.3636 across the board for the year. My figures then go to our accountant (French, registered, etc etc) including all the backup paperwork including spreadsheet - and for the past three years he's agreed my use of one figure (given to me by the tax office each spring) for the year. I don't mind what I do - it's not much extra hassle to enter the different exchange rates but if I can keep it simple, I will. And do.    Report

13/05/2008, 11:16 tuppence Joined on 11/02/2008 Pas de Calais Posts 64 Re: Exchange rate for Tax purposes I don't suppose for one moment that everyone will have the details of income/exchange rates, but I DO. I use Microsoft Money and each time money comes into my account or when I take out money from an ATM in france I log down the exchange rate which has proved useful when completing my 1st tax forms. Someone will probably think I am a sad old biddy but who cares, the figures are accurate for me. tuppence    Report

Page 3 of 9 (78 items) < 1 2 3 4 5 > ... Last »

France Forum » Legal and Finan... » French Finance » Re: Exchange rate for Tax purposes

(Quick links) Forums Home |- Search Forums |- Active Topics |- Unanswered Posts User Options |- Sign In |- Join this community |- Forgot Password About This Forum (READ ONLY) |- About This Forum Moving |- Finding/Owning French Property |- Making the Move From Outside the EU |- Long-Term Letting |- Employment Vacancies in France Legal and Finance |- French Legal Issues |- French Finance Building and Renovation |- House Renovations |-- Working with Wood Living |- Earning a Living |- Driving |- French Education |- Pets |- Animal Welfare, Rescue & Protection |- French Satellite TV, French Internet and Telephone |- Health |-- Changes to Healthcare Entitlement, CPAM, CMU and Cartes Vitales |- Swimming Pools in France Owning/Running a Business |- French Artisans |- Gite Owners |- Hotel and Restaurant Owners |- B&B/Chambres d'Hôtes Owners Leisure and Pastimes |- Gardening |- Sport, Leisure and Pastimes |- Shopping |- French Antiques, Arts & Crafts |- Photography |- Motorcycling in France |- Books and Literature |- Getting Married in France |- Pregnancy and Birth French Culture |- French Food and Wine |- French Culture |- French Language |-- French Language FAQs and Useful Links |- Wildlife/Nature/Environment |- French History Travelling to/from France |- Travelling to/from France |- Latest Good Value Deals to/from France Holidays |- Holidays General Discussion |- The Complete France Post Bag |- The Lighter Side |- Other Topics |- Forum Technical Support |- Useful Links About France/French Living Regions |- HOTEL SEARCH |- Central |- North East |- North West |- Paris Ile de France |- South East |- South West |- East |- West |- Corsica and DOM-TOMs