A French court has ruled that prélèvements sociaux (social charges) could not be levied on some investment income

Some of our French clients may remember the saga of the de Ruyter case in 2015. The European Court ruled that French prélèvements sociaux (social charges) could not be levied on the investment income of EU pensioners and non-residents for the years 2012-2014.

We negotiated some significant refunds for clients at the time, but the Hollande government thought they had found a way round the ruling.

However, a court in Nancy has now ruled that the subsequent change in status of the charges was itself illegitimate and the original de Ruyter ruling may continue to apply. The Nancy ruling has yet to be confirmed at a higher court but if it is there could be more refunds due to EU pensioners resident in France who have suffered social charges on their investment income and some non-French-residents who have similarly suffered these charges. The periods in question are income for the years 2015, 2016 and 2017.

One sting in the tail ! Due to French refund limitations any claim for 2015 must be lodged with the Administration before the end of 2018. Subsequent years will have a 3-year time out too.

We are working with our French associate, maitre Cédric Riviere, to prepare and submit claims for clients who may be affected. Cédric is happy to advise and assist anyone who thinks they may be due a refund for 2016 and 2017.

Contact us on [email protected] mentioning the de Ruyter claim and we will be able to help you.