2: Tax fines

When the administration establishes that a fonds commun de placement à risques, a fonds professionnel de capital investissement or a société de libre partenariat whose rules or articles of association provide that the unit holders or members will be able to benefit from the tax advantages provided for in 2° of 5 of article 38 and to the articles 163 quinquies B, 150-0 A, 209-0 A and 219 has not complied with its investment quota provided for in 1° of II of article 163 quinquies B, the fund management company or the manager of the société de libre partenariat shall be liable for a fine equal to 20% of the amount of the investments that would make it possible to achieve an investment quota of 50%. The amount of this fine is, however, limited to the amount of the sums owed to it by the fund in respect of management fees for the financial year concerned.

When the administration establishes that a fonds commun de placement dans l'innovation or a fonds d'investissement de proximité has not complied, within the time limits set out in VI to VI ter of article 199 terdecies-0 A when their unitholders benefit from the income tax reduction provided for in that same article, its investment quota provided for, as the case may be, in I of article L. 214-30 of the Monetary and Financial Code, in I of l'article L. 214-31 of the same code or VI ter of article 199 terdecies-0 A, the fund management company is liable for a fine equal to 20% of the amount of the investments that would have made it possible to achieve, depending on the case, at least half or all of the 70% investment quota. The amount of this fine is, however, limited to the amount of the sums owed to it by the fund in respect of management fees for the financial year concerned.

The fine provided for in the previous paragraphs is exclusive of the fine provided for in Article 1763 B. The amount of the fine provided for in the previous paragraphs is reduced by a deduction equal to the proportion of the amount of subscriptions made by persons who do not have their tax domicile or registered office in France to the amount of subscriptions issued by the fund. This proportion is assessed on the first day of the financial year during which the investment quota has not been met.

When the administration establishes that a local investment fund or an innovation investment fund has not complied, within the deadlines set out in c of 1 of III of Article 885-0 V bis in the version in force on 31 December 2017 , its investment quotas likely to enable unitholders to benefit from the tax advantage provided for in the same article, the fund management company is liable for a fine equal to 20% of the amount of the investments that would make it possible to achieve 50% or 100% of these quotas, as applicable. The amount of this fine or, as the case may be, of these fines is, however, limited to the amount of the sums owed to it by the fund as management fees for the financial year in respect of which the breach is established.

When the administration establishes that a company does not comply with the obligations set out in the penultimate paragraph of 3° of the I of Article 199 terdecies-0 A and the penultimate paragraph of 3 of the I of Article 885-0 V bis in the version in force on 31 December 2017, the company is liable for a fine equal to 1% of the amount of the subscription which gave entitlement, for each subscriber, to the tax reduction provided for by 1° of I of Article 199 terdecies-0 A or 1 of I of Article 885-0 V bis as amended on 31 December 2017, for the financial year in question. However, the amount of this fine is limited to the amount of the sums due to it in respect of management fees for the financial year concerned.

When the administration establishes that a local investment fund or an innovation investment fund does not comply with the obligations established in 2 bis of VI of Article 199 terdecies-0 A and in the last paragraph of 1 of III of Article 885-0 V bis in the wording in force on 31 December 2017, the fund is liable for a fine equal to 1% of the amount of the subscription which gave entitlement, for each subscriber, to the tax reduction provided for by 1 of VI of Article 199 terdecies-0 A or 1 of III of Article 885-0 V bis as amended on 31 December 2017, for the financial year in question. However, the amount of this fine is limited to the amount of the sums due to it in respect of management fees for the financial year concerned.

When the administration establishes that a company has not complied with the obligation to provide prior information to subscribers provided for in f of 3 of I of Article 885-0 V bis in the version in force on 31 December 2017, the company is liable to pay a fine for the financial year in question equal to 10% of the amount of the subscriptions which entitled each subscriber to the tax reduction provided for in 3° of I of Article 199 terdecies-0 A or I of Article 885-0 V bis as amended on 31 December 2017. However, the amount of this fine is limited to the sums due to the company in respect of management fees for the financial year concerned.

When the administration establishes that a company has not sent it a summary statement of the companies financed before 30 April, in accordance with the last paragraph of 3° of I of Article 199 terdecies-0 A and the last paragraph of 3 of I of Article 885-0 V bis in the version in force on 31 December 2017, the company is liable to pay a fine for the financial year in question equal to 10% of the amount of the subscriptions which gave entitlement, for each subscriber, to the tax reduction provided for in 1° of I of Article 199 terdecies-0 A or in I of Article 885-0 V bis as amended on 31 December 2017. However, the amount of this fine is limited to the sums due to the company in respect of management fees for the financial year concerned.