France to increase tax advances paid by big firms: papers
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A businessman walks on the esplanade of La Defense, in the financial and business district in La Defense, west of Paris, April 10, 2014. REUTERS/Gonzalo Fuentes/File Photo
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
PARIS (Reuters) - The French government plans to increase advances big companies have to pay on their 2017 taxes, two newspapers reported on Friday, in a move the main employers association has criticized.
The extra cash would help keep the government's deficit reduction plans on track as it cuts household taxes and increases spending on items like security heading into a presidential election next April.
President Francois Hollande's government plans to cut the public deficit to 2.7 percent of economic output next year from an estimated 3.3 percent while not increasing the overall tax burden. It will publish its 2017 budget at the end of the month.
Les Echos newspaper said the new tax advance on companies with revenues of more than 250 million euros ($279.02 million) should allow the state to book 400 million euros in 2017 instead of 2018.
A further 400 million euros could be reaped by broadening a tax advance paid by banks on some savings accounts, the paper and another daily, L'Opinion, reported.
The Budget Ministry declined to comment.
"To finance electoral gestures and bring the deficit to 2.7 percent next year, the government is using budgetary tricks that harm the country's attractiveness," the Medef employers association said in a statement.
Any sign of slippage on France's deficit targets is likely to trigger criticism from the European Commission and France's independent fiscal watchdog, which could prove embarrassing to the Socialist-led government heading towards the presidential vote.
(Reporting Yann Le Guernigou and Jean-Baptiste Vey; Writing by Leigh Thomas; Editing by Tom Heneghan)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- France arrests new suspect in foiled terror plot
- Iraq says army makes gains in grueling Mosul battle
- Colombian Nobel Prize winner sees a "ray of hope" for Syria, Sudan
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!