Decision of the Constitutional Council Regarding the Tax Exemption of Compensation for Insurance Agents
In a ruling issued today, the Constitutional Council struck down a tax provision following a preliminary ruling on constitutionality.
He believes that there is unequal treatment between insurance general agents who have carried out their activities as individuals and those who have done so within a partnership with regard to the exemption from tax on the severance pay received upon the termination of their activities. This difference is unrelated to the purpose of the law, and the exclusion of insurance agents who have carried out their activities within such partnerships from the scope of the exemption is therefore unconstitutional.
It declares that the phrase“practicing in an individual capacity”in paragraph 1 of Section V of Article 151 septies A of the General Tax Code is unconstitutional.
Claims may thus be filed within the applicable filing deadlines.