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.