APPENDIX E

4172
J

2. The Transfer Duty (Droit de Transmission) of Fr. o.25
per Frs. 100, based upon the average market price of the
security in Paris for the previous year, payable in quarterly
instalments.

The Income Tax (Impét sur le Revenu) of 16 per cent. on
interest or dividends paid.

In the case of securities on which the income varies, the
tax has to be paid in advance in quarterly instalments,
each provisionally calculated on the basis of one-fifth of
the previous year’s dividend. Ifitis eventually established
that no dividend was paid during the year the sum thus
provisionally paid is refunded by the Fisc. If dividends
are paid a final settlement is arrived at after the actual
dividends for the year are ascertained. In the case of a
new company that has not commenced the payment of
dividends, the quarterly instalment of one-fifth is cal-
culated on a supposed revenue of 5 per cent. on the
security in question.

The company is entitled to recover the transfer duty
and income tax, by deductions made when paying dividends
to its French shareholders. If it does not, the amount of
these taxes is regarded as additional dividend, and a
supplementary income tax is payable based on the total
amount of transfer duty paid for the previous vear and
on the income tax.

These taxes are payable on the proportion of the capital
>stimated by the Fisc to be in circulation in France, the estimate
being based on the number of shares registered in the names of
persons whose addresses are in France, plus the number of
bearer shares estimated to be in France as shown by the cashing
of coupons and other indications regarding which the company
has to furnish information to the authorities. The assessment
is fixed for a period of three years at a time.

It is necessary to appoint a French financial institution as
Représentant Responsable, and to forward to that institution:

‘a) A declaration of the Company’s intention to circulate in

France certain shares; of its undertaking to pay taxes;
and of its appointment of the institution named as
Représentant Responsable.

'b) A letter indemnifying the Représentant Responsable in

respect of the abonnement.

These documents are usually drafted by the Représentant
Responsable, signed by two directors and by the secretary, and
sealed before a notary, the notary’s certificate being legalised
by the French consul.

A French translation (preferably made by a sworn translator.
of the company’s complete articles of association has te be pup-
lished in the Bulletin des Annonces légales obligataives a la charg.
des sociélés financiéres.