Protect our family business! This is the essence of the Dutreil pact, named after the minister for SMEs who envisioned it in the early 2000s. This tax loophole in fact significantly reduces the tax on the transfer of a family business, amounting to 75% of its value.
The device is certainly interesting. This ensures that the heirs of an SME are not forced to sell the company (perhaps to foreign investors), or dilute it by taking high dividends, to pay the tax bill. But it has also been extremely detrimental to public finances, according to a report from the Court of Auditors made public on Tuesday.
