FRANCS FOR FRANCE.

Timaru Herald, Volume CXXIII, 2 June 1926, Page 2

FRANCS FOR FRANCE.

TAX ON VISITORS. K WIDE NET SPREAD. “DEPOSIT” NOT EASY TO RECOVER. PARIS, March IS. The more one studies the clauso of the new finance law concerning the taxation of- foreigners, the more obscure .it seems. It may be hoped that the decree which is to complete it will throw some light on its obscurities. The principle of the clause is that foreigners not domiciled in Franco arc to ho liable to income tax if they have their “principal residence” in tho country, oven if they livo in./■hotel, boarding-house, or furnished quarters of any kind, and also: if they have .furnished offices. Tliero is no definition of the term “principal .residence,” the moaning of which is left to conjecture. In any ease, such provision' as this must bo unprecedented in any country. The clause, moreover, proceeds to impose taxation on every foreigner visiting France whose’ l-cnb exceeds 1,000 francs monthly. It is true the clause docs not pall it taxation. It is merely a deposit on account of income tax amounting io 25 per cent, of tho rent paid, which is to be collected by tho hotelkeeper or other lessor at the end of every mouth. Whether this means tho end of every • mouth of the year or every month of the. tenancy is uncertain. If the victim does not become liable to income tax, or if tho amount ■ lie'- hats paid exceeds tliei amount of tho (tax, ho will bo able to recover the money, and tho decree is going to tell him how to do it. It may safely he said that tho conditions will make recovery quite impossible, for tho foreigner will liavo returned to his own country. Unless, therefore, the provisions of the clauso arc grufdly mollified by tho decree (they cannot bo modified in principle), what it conies to is that nearly every foreign visitor to Franco is to he taxed 25 per cent, on his room in hotel or elsewhere after lie has been in Franco a certain time not specified. It would have been morn frank to say so instead of. giving the tax the hypocritical disguise of deposit on account of future income tax which may never become due.