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Thursday, May 10, 2012France

Tax on cosmetics: a postponement, and then?

©L'Observatoire des Cosmétiques

Six more months to declare it: every company has now until the 1st October 2012 to comply with this new obligation! Indeed, it will have to be paid. This is what must be understood after the order by the State Council on April 27. Nevertheless,  it endorses some modifications issued by the French Agency Afssaps, especially about the fines in case of lack of declaration, as the Cosmed press release states.

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In its  4 May press release , the French FEBEA was happy with this first victory in the fight that it has initiated against the “cosmetic tax", put in place in the 2012 Social Security Finance Law last November. The reason for satisfaction: the further six-month delay to declare the amount of sales to the Afssaps ( now ANSM ).
However, the substance of the bill is still mandatory, after the request to suspend its application has been rejected: the tax shall be paid.

Cosmed, in a letter to its members, notes some significant steps, especially the fact that the Afssaps commitments about this delay for the declaration, as the fines (up to 45,000 €) due in case of lack of declaration “ are now in writing in a judgment. This means a sure legal stability for companies .”

It explains these steps made by the Agency:
“1 – The Afssaps confirms it will not ‘automatically’prosecute the companies, which would have not declared. The likely prosecution would be enforced if the company does not comply after several reminders, or if it does this every year. Further, only a criminal court judge would be allowed to give fines, after a request …

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