Saint -Martin Receives Answer on Definitive Date of Transfer of Fiscal Competence

 Saint -Martin Receives Answer on Definitive Date of Transfer of Fiscal Competence

In a letter dated July 8, 2008 the Budget Minister informed President of the Collectivité, Mr. Louis Constant Fleming that the transfer of the fiscal competence that is previewed by the organic law n°2007-223 of February 21, 2007 became effective as of July 15, 2007 the date of the first meeting of the Territorial Council of Saint-Martin.

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This confirmation has been long awaited by the Collectivité and clears up several grey areas that have been in dispute between the Collectivité and the State, among them, the issue of beneficiary of the 2007 fiscal revenues. In her letter the Minister conceded that the complexity of having residents of Saint Martin fill out two fiscal declarations under two distinct fiscal legislations would be difficult both for the tax payers and the fiscal services. "This is why we have the pleasure to propose to you that the Saint-Martin fiscal legislation be applied by anticipation to all of the revenues collected from the residents of Saint Martin in 2007. The product of this imposition as a consequence will come back to the Collectivité, except for taxes on organised events."

Another important matter that was cleared up by the Ministerâ??s letter had to do with the issue of the 5 year residency and how and when should that residency be deemed as satisfied. The letter said that "The Council of State in addition précised in its ruling n°381.054 of December 2007 that in view of the silence of the organic law on the matter, the conditions of the five year residence was fulfilled from the moment that persons resided in the Collectivité during the five years prior to the date of which this condition should be estimated."