Bankruptcy Law

In accordance with Article L. 626-6(1) of the Commercial Code, the financial administrations, social security bodies, institutions managing the unemployment insurance scheme and institutions governed by Book IX of the Social Security Code may agree to remit all or part of their debts to the debtor under conditions similar to those that would be granted to him, under normal market conditions, by a  …

Tax and social security creditors

In accordance with Article L. 626-6(1) of the Commercial Code, the financial administrations, social security bodies, institutions managing the unemployment insurance scheme and institutions governed by Book IX of the Social Security Code may agree to remit all or part of their debts to the debtor under conditions similar to those that would be granted to him, under normal market conditions, by a private economic operator placed in the same situation. When the proposal submitted to these creditors concerns a payment period and they are consulted in writing, failure to reply within thirty days of receipt of the letter from the legal representative constitutes acceptance .

The text specifies that the financial authorities may remit all direct taxes collected for the benefit of the State and local authorities as well as various products of the State budget due by the debtor. According to Article D. 626-10 of the Commercial Code, this includes penalties, interest on late payments, interest on arrears, tax or customs fines, surcharges, and prosecution costs, regardless of the tax or other State budget product to which these penalties or costs apply. This also applies to the principal amount of direct taxes collected for the benefit of the State and local authorities and to State claims other than taxes and property, state fees, fees for services rendered and other miscellaneous income from the State budget. With respect to indirect taxes collected for the benefit of the State and local authorities, only late payment interest, surcharges, penalties or fines may be remitted, so that no remission may be granted for VAT itself . The remission of penalties, late payment increases and prosecution costs due by the debtor on the date of the opening judgment applies without distinction according to whether they are preferential or unsecured .

Article D. 626-10 also refers to certain sums that may be due to social security organizations and to Pôle emploi. Employers' social security contributions of legal or contractual origin that an employer is required to pay for the employment of employees may also be remitted.

The remission of debts is granted in priority on the costs of proceedings, surcharges and fines, then on the late payment interests and the interests on arrears, and finally on the duties and sums due in principal. Debts owed in principal cannot be remitted in full.

Applications for debt remission are examined by a commission made up of the heads of financial services and representatives of the organizations and institutions concerned . The referral to this commission must take place, on pain of foreclosure, within six months of the date of initiation of the procedure and in no case after the end of the procedure . The power of the departmental commission of chief financial officers to grant remission of the principal of the debt is not exclusive of the remission ipso jure of the penalties, late payment increases and prosecution costs owed by the debtor .

Finally, the creditors referred to in the first paragraph of Article L. 626-6 may also decide to assign the rank of a privilege or mortgage or to waive these securities .

CA Lyon, 30 January 2014, LawLex202100005322JBJ (S).

CA Grenoble, 13 March 2014, LawLex202200004272JBJ (RJ).

Bankruptcy Law

249. Tax and social security creditors

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249. Tax and social security creditors

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise