French People: Hurry and Get Your Gold Before It's Too Late
[Thanks to Comptoir Change Opera at www.ccopera.com for the image.]
It used to be possible to make cash purchases or sales of gold up to an amount of 15,000 euros without declaring the purchase (although at least one company limits the sum to 3,000 euros).
As of July, however, there is a new law. It says:
"Law No. 2011-900 of July 29, 2011 of financial rectifications for 2011(1)
"I. - After Article 88 of the General Tax Code is inserted an Article 88A as follows:
" 'Art. 88A - All persons or corporations who regularly purchase ferrous and nonferrous metals on the retail market must submit, before January 31 of each year, to the taxation authorities of their place of residence or legal domicile, a declaration the contents of which is fixed by decree, in which shall figure the identity and address of the sellers and the total amount of the purchases made from each of these.' "
This Law also modifies another Article which now reads as follows:
"Modified by Law No. 2011-900 of July 29, 2011 - Art. 51(V)
"I. - ... Any transaction relative to the retail purchase of ferrous and nonferrous metals is to be made by check, bank or postal transfer, or by credit or debit card, with the total amount of the transaction not to exceed a ceiling fixed by decree. The non-respect of this obligation is punishable as a misdemeanor of the fifth class...."
This punishment consists of a passage before a judge, a fine of between 1,500 and 3,000 euros, possible imprisonment with or without a suspended sentence, mention in one's criminal record, and some kind of restriction of liberty such as the confiscation of the assets involved.
- A vendor's web page on the subject
- Article L.112-6 itself, in the original French
- The new Article 51, in French
The sale of gold bars or coins to a professional vendor is currently taxed in France, unless the seller can prove he acquired the assets more than 12 years ago. If the seller can prove the date of purchase, he can calculate the tax at 31.3% minus a 10% reduction for each year of possession starting with the third year. If he cannot prove the date of purchase, he can opt to pay an 8% tax, no questions asked.
Sovereign-state politicians are too smart to allow the public to buy and sell gold free and clear, because they know that if they did permit it, the public would no longer allow the state to manipulate the currency. But even with the taxes, people are now buying gold more than ever.
Perhaps the reason for France's recent law changes has to do with political fear of the public's reactions to what politicians have done, and are continuing to do, to their national currency.