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16/05/2008, 8:00 Ron Avery Joined on 29/11/2004 Posts 3,109 Re: Exchange rate for Tax purposes Well you always know you can rely 100% on the info published in *****xions, Ernie,  how would we manage our lives without it Here is a recent gem of a response to a question about why they told people that UK interest should be declared net, and not gross. As UK bank interest is paid after the deduction of UK income tax, it is received net. Other income sources are generally exempt from income tax, so are also paid net, although this figure will, admittedly, be the same as the gross income.  With it so far The French require that it is the net income received that is initialled “declared” on the form 2047 as there is then a method of accounting for the income tax in order to then produce the gross income which, yes, will be “assessed" No wonder people are totally confused about filling in what is a simple tax return with this quality and clarity of advice Why not post a sensible answer, people will appreciate it more    Report

16/05/2008, 8:08 BobDee Joined on 17/08/2005 Reaup Lisse 47 Posts 112 Re: Exchange rate for Tax purposes Ernie/Ron The link included a copy of my Email to impots just asking them what rate to use and their response. i.e. 1.3636. Who can argue with that? What more do you need?   Regs from someone whose papers have been posted and now trying to stay away from these forums. Still a great source of entertainment though.... BobD    Report

16/05/2008, 8:26 Ron Avery Joined on 29/11/2004 Posts 3,109 Re: Exchange rate for Tax purposes Actually in article I read, it was pointed out that in some cases by using the so called  "official" rate of £1/ 1.36€, people will actually have been assessed on more euro income than they actually received as the rate at the end of December was 1.33€, but no doubt they used the "official" rate Why not post a sensible answer, people will appreciate it more    Report

16/05/2008, 11:56 sueyh Joined on 06/10/2004 62 Posts 183 Re: Exchange rate for Tax purposes Has anyone had the official line from the Impots in Pas de Calais?  What figure are they using there? Suey    Report

18/05/2008, 7:24 tigerfeet Joined on 01/10/2007 Posts 94 Re: Exchange rate for Tax purposes Who is correct in all this ? Should not a definative answer go in the FAQ ? SD wrote  Sunday Driver wrote: According to the the French Impots: Revenus encaissés en monnaie étrangère Si les revenus ou bénéfices en cause ont été encaissés en monnaie étrangère, ils doivent être déclarés pour leur contre-valeur en euros, calculée d'après le cours du change à Paris au jour de l'encaissement (réception en espèces, inscription au crédit d'un compte, etc.) So it's the exchange value on the day of receipt. However, the practicality of retrospectively calculating this for regular income such as pensions means that local tax offices may normally consider accepting the official exchange rate as at the end of the tax year, or they may set their own rate.  If you want to use an overall rate, then you'd best confirm it with them first, given that the rate as at 31.12.2007 was £1 = 1.362 Euro and using that figure would clearly result in an underdeclaration. and BD wrote  BobDee wrote: OFFICIAL RESPONSE Amazingly fast response to my Email to infotax-southwest@dgfip.finances.gouv.fr in which I said: Your help please,     Also can you give me the correct Euro/Pound exchange rate please for 2007.   Thank you REPLY The exchange rate for the fiscal year 2007 is : 1euro = 0,73335 pound 1 pound = 1,3636   euro      Report

18/05/2008, 8:21 Jay Joined on 26/09/2007 Posts 58 Re: Exchange rate for Tax purposes The official rate is as BobDee wrote 1.3636. This was the figure quoted by several tax offices and the response from gouv.fr - what more could you ask?    Report

18/05/2008, 9:47 Cat Joined on 21/01/2005 ------- Forum Moderator ------- Lot Posts 2,837 Re: Exchange rate for Tax purposes In my opinion, the rate should be either the rate on the day that your sterling was exchanged to euros or the rate that your local tax office tells you to use.  As we have seen, this will not always be the same rate as the 1.3636 quoted by many local tax offices.  Don't be fooled by the gouv.fr email address above, it is a local one rather than a national one (each area uses a different local prefix, but the same @dgfip.finances.gouv.fr  ending) and so the rate given in their email is still subject to their own interpretation of the rules, rather than a nationally issued rate. Do as your conscience tells you. Cathy Sun, sun, sun, here it comes...    Report

18/05/2008, 9:58 ErnieY Joined on 05/12/2006 Nr Prayssac (Lot) Posts 3,048 Re: Exchange rate for Tax purposes  Ron Avery wrote: Well you always know you can rely 100% on the info published in *****xions, Ernie,  how would we manage our lives without it No argument there Ron and not defending them but in this case they were just parroting the pages from the Annett-consultancy site. I wonder if some are perhaps losing a sense of proportion here though; Whilst nobody wants to pay more tax than absolutely neccessary, and intending no offence or belittlement, from my own (admittedly limited) experience and observations, it would seem reasonably fair to say that a goodly number of Brits filling in their own tax forms are on what may be termed 'relatively modest' incomes, with correspondingly modest tax liabilities and therefore the actual nett difference between calculating @ 1.3636 or 1.4237, (4.5%), is unlikely to make much of a dent in the French national debt nor be a lifestyle changing sum for any but the very poorest. IMO it's not a totally unacceptable price to pay for a clear concience Those with more stellar incomes of course will likely have their tax forms filled in by clever accountants and likely pay less than the average pensioner  Just as a benchmark I wonder how much tax a couple living on full UK state pensions would expect to be paying ?     My doctor said one drink per day, I can live with that !    Report

18/05/2008, 10:09 cooperlola Joined on 05/05/2006 72 - Sarthe - home of les 24 heures du Mans Posts 6,376 Re: Exchange rate for Tax purposes  Cat wrote: In my opinion, the rate should be either the rate on the day that your sterling was exchanged to euros   Well, surely, it's the exchange rate when you were paid, not when you changed it?  Although I do admit that this is what I do (I literally go through all my bank statements and take the mean rate for the year on all my cash withdrawals, for the pension which is paid to the UK bank account) as at least it is prove-able should I be subject to an audit at any time.  I too, go for the conscience option - I don't think my way is likely to offend any officials, so I just follow my instincts on this one - and my instinct says that this year, the end of year rate is unrealistic, given what the actual rules (as quoted by S/D) state.  And just for accademic interest - my own personally-calculated rate came out at 1.449 - quite a difference, non? Healthcare Issues Site    Report

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

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