French General Tax Code
In forceI. - Notwithstanding the provisions of Article L. 323-13 of the French Rural and Maritime Fishing Code, the contribution of an asset by a farmer to a Groupement agricole d'exploitation en commun constitutes a transfer within the meaning of 1 of article 38.
II. - Without prejudice to the provisions of the fifth paragraph of 1 of Article 42 septies, of III of Article 73 of the second paragraph of 3 of article 75-0 A, of the penultimate paragraph of l'article 75-0 B, article 151 octies and the second paragraph of I of article 151 octies A and notwithstanding the provisions of article L. 323-13 of the Code rural et de la pêche maritime, in the event of the contribution of a farm to a groupement agricole d'exploitation en commun, the income tax due in respect of the profits made on this farm and which have not yet been taxed is established immediately. Taxpayers must, within sixty days of the contribution, notify the administration and inform it of the date on which it was or will be effective, as well as the name and address of the beneficiary group. Taxpayers are required to send the tax authorities, within the same time limit, a declaration of their profits together with a summary of their profit and loss account. To determine the profit, the system defined in articles 39 duodecies et seq. is applied. If the taxpayers do not produce these declarations or information or if, when asked to provide the necessary evidence in support of the declaration of their profits, they fail to provide it within thirty days of receiving the notice sent to them to this effect, the tax bases are determined automatically.
