The French government has decided not to include works of art in the calculation of wealth tax, it was learned on July 23rd 1998. A special tax committee had recommended the inclusion of works of art in the assessment of the wealth tax - any Frenchman whose wealth is evaluated at 4,7 million FF (US $ 785,000) is liable to it- but professionals strongly protested against this proposal stressing that France would lose its role on the art market and worse that a black market would flourish immediately after the adoption of that draft. Meanwhile, the government has announced that foreign auction houses would be allowed to hold sales in France from January 1st 1999. This decision has been welcomed by such companies as Sotheby's and Christie's which have acquired premises in that view. French auctioneers have nevertheless decided to oppose the government regarding the indemnities they would receive following the ending of their monopoly on sales. Such indeminities (totalling 440 million FF (US $ 73,3 million) are due to be calculated according the activities of auctioneers between 1992 and 1996 but auctioneers claim that these only represent half of the value of their offices. They said the overall debts incurred by the profession already totalled 500 million FF (US $ 83,3 million) and that the competition due to be generated by Sotheby's and Christie's on French soil would lead to the disappearance of many of their colleagues from the auctioneering scene. In the meantime, French authorities have decided to set up a special body to protect the auctioneering profession. Special sales licenses for auctioneers will be compulsory while a disciplinary committee will be created as well as a new body of approved experts for all categories aimed at protecting vendors and sellers. French auctioneers however regret that strong distorsions between France and other countries remain regarding sales taxes, such as VAT and copyrights for artists who died after 1928. In response the government promised to study measures aimed at encouraging the French art market. Adrian Darmon
The French government has decided not to include works of art in the calculation of wealth tax, it was learned on July 23rd 1998. A special tax committee had recommended the inclusion of works of art in the assessment of the wealth tax - any Frenchman whose wealth is evaluated at 4,7 million FF (US $ 785,000) is liable to it- but professionals strongly protested against this proposal stressing that France would lose its role on the art market and worse that a black market would flourish immediately after the adoption of that draft. Meanwhile, the government has announced that foreign auction houses would be allowed to hold sales in France from January 1st 1999. This decision has been welcomed by such companies as Sotheby's and Christie's which have acquired premises in that view. French auctioneers have nevertheless decided to oppose the government regarding the indemnities they would receive following the ending of their monopoly on sales. Such indeminities (totalling 440 million FF (US $ 73,3 million) are due to be calculated according the activities of auctioneers between 1992 and 1996 but auctioneers claim that these only represent half of the value of their offices. They said the overall debts incurred by the profession already totalled 500 million FF (US $ 83,3 million) and that the competition due to be generated by Sotheby's and Christie's on French soil would lead to the disappearance of many of their colleagues from the auctioneering scene. In the meantime, French authorities have decided to set up a special body to protect the auctioneering profession. Special sales licenses for auctioneers will be compulsory while a disciplinary committee will be created as well as a new body of approved experts for all categories aimed at protecting vendors and sellers. French auctioneers however regret that strong distorsions between France and other countries remain regarding sales taxes, such as VAT and copyrights for artists who died after 1928. In response the government promised to study measures aimed at encouraging the French art market. Adrian Darmon
Home
