New Britain herald., 1930-05-03
TREASURY HEADS
 ID DEBATE TAXES
French and Americans Seek to
 Eliminate Inequalities

Paris May fP}-New efforts to rid Franco-Amcrican business rela- tions Of some of their hindrances and drawbacks were undertaken to- day when treasury experts of both countries began discussion of inter national taxation problems.
 First on the agenda was the prob lem of double taxation by France Of American companies operating here. This taxation. involving huge amounts Of money and great incon venience 10 the firms involved. has been the occasion for number of protests by the American state de to drive some American companies out of the French field.
 To Eliminate Inequalities
 The conversations inaugurated to- day, it is hoped, will result in an accord eliminating whatever in cqualities may exist in international taxation. reducing the annoyanCes involved in the taxing of nationals of one country by the other and permitting Americans doing business in France to know in advance just hat proportion of their turnover and profits must go to the French government.
 The American representatives, who will act in conjunction with Am bassador Walter E. Edge, arc George All ord, representing the treasury department, Mitchell Carol. Of the department Of commerce, and Pro lessor Thomas SeTall Adams. Of Yale university. internationally known authority on taxation.
 Sums saturated at many millions Of dollars are d. stake in the neeo- tiations OCT doubIc taxation. Under a recent interpretation Of the old French law Of 1875, foreign parent corporations having branch business in France must not only pay, like French corporations, a tax Of 15 per cent, on profits and an s per cent dividend tax. but also an ad ditional tax of IS per cent. which the French fiscal authorities declart they have the right to assess on the foreign parents corporations.
 NcrdiCts in Lower Courts
 Test suits have resulted in yer diets against American corporations in the lower courts but the highest French tribunal. the court of cas- sation, has not yet ruled. The Amer ican government has not taken cX- ception to the first two imposts, but holds the third unimposablc under international law.
 Troubles Of the American corpor- atlons have been increased by the difficulties of bookkeeping. In one case, where an American company was presented with an assessment covering several precedent years, the natural protest was met with the re- ply: Firing your books from Amcri- ca and perhaps a revision can be made" As the books for the period covered would have filled a couple Of Atlantic liners, the offer was de clned and the company began 10 wind up its business here. Its de parturc has. however, been post poncd by the present negotiations.
 The French. on the other hand, dc clare that many foreign corporations have fagrantly evaded the French taxation laws, and that imposition Of the present system is necessary to proper taxation. Especially has the dividend tax been cvadod, say French authorities.
 Others show Interest
 Other countries have shown the llvest interest in the present convcr- sations, for British. Swiss, Belgian and other foreign companies have been presented with equally large tax bills. Belgium, it is understood has proposed arbitration. and the whole matter may be brought up before the permanent court Of arbI- tration at The Hague.
 Switzerland has already negotiat- cd treaties "outlaving" double taxa ton with Austria and Germany IS negotiating for a similar treaty with Great Britain, and has made repre- sentations to France. The English government, similarly, has approach cd the French government through the international chamber of com- merce, A special commission of the League of Nations is studying the problem in an effort to produce a general taxation treaty.