Public aid in the event of difficulty in a company

Verified 02 July 2021 - Directorate for Legal and Administrative Information (Prime Minister)

Public support exists for companies in difficulty. A company that is struggling to meet its financial deadlines, or whose development prospects are uncertain, can receive government and local government support in various ways. The company can also obtain payment terms, debt forgiveness or loans.

Local and regional authorities may grant of aid in the form of exemption from taxes, direct aids or guarantees (guarantee).

In the event of temporary cash-flow difficulties, it is possible to obtain payment periods for certain tax and social security debts. The Committee of Heads of Financial Services may grant a clearance plan companies that meet the conditions. The company and the commission will put in place a payment schedule to allow the company to pay its debts.

If the tax debt is manifestly disproportionate to the real possibilities of repayment, and depending on the situation of the company, the adjustment may go as far as graceful discounts or moderations. We're calling moderation the abandonment of part of the taxes due and delivery abandonment of the totality.

Warning  

a tax graceful remission or moderation may cover all penalties or direct taxes (e.g. income tax, local taxes). But registration fees (inheritance taxes) or VAT are excluded.

How do I enter the CCSF?

The CCSF can be referred to it in three different ways:

  • At the initiative of the company
  • At the initiative of a member of the committee
  • At the initiative of a public accountant as part of its detection-prevention mission

Where the company requests debt forgiveness during conciliation, safeguard or judicial redress proceedings, one of the following persons may apply to the CCSF:

  • Debtor
  • Conciliator
  • Administrator
  • Ad hoc agent

They have a deadline of 2 months from the opening of proceedings to make the request.

A letter should be sent to the permanent secretariat of the CCSF located at DDFP: titleContentor the company tax office (SIE) on which the company depends.

Who shall I contact

What should be included in the application for debt forgiveness?

The dossier shall contain the following information:

  • Company name, legal form, address, Siren number, Urssaf number, number of employees
  • Origin of the financial difficulties and the recovery measures envisaged
  • Presentation of the company's situation
  • Attestation on honor justifying the wage shares of social security contributions
  • Last tax book of the company
  • Proof of the financial difficulties and the company's present cash position
  • Revenue and Cash Flow Forecast Statements for the Coming Months
  • Last balance sheet closed

Agreement of the clearance plan by the Commission

A company that has not fully paid its employer contributions may have access to debt forgiveness.

However, in order to agree on a timetable, it must be up to date with the submission of its social security tax returns and the payment of its contributions and wage contributions.

When the clearance plan is granted, the company must make a monthly transfer to the Departmental Public Finance Directorate.

Second, the management will distribute the money among the company's various creditors.

The company which so wishes may request a total or partial remission of the surcharges and penalties due to the late payment of its tax and social security debts.

On the other hand, it must have fulfilled one of the following conditions:

  • It must have all the contributions and contributions that resulted in these increases and penalties
  • It must have begun a clearance plan, which allows the company to benefit from the rebate before the contributions and contribution are paid. However, the company must comply with the clearance plan.

Warning  

if the company does not comply with the terms of the clearance plan, it will have to pay mark-ups and penalties.

The Codefi: titleContentmay be seized by a company in difficulty employing less than 400 employees. It may seek financial solutions for its recovery or restructuring, propose the conduct and financing of an audit or grant loans.

Such aid may also be used to finance a social plan.

This interministerial local body, placed under the authority of the prefect, represents all government departments to guide and inform companies in difficulty, all sectors combined.

How to enter the Codefi?

To enter the Codefi: titleContent, the company shall send its request by post to the Permanent Secretariat of Codefi, located at DGFIP: titleContent or to the tax department of the companies on which the company depends.

Who shall I contact

Companies with more than 400 employees who are experiencing difficulties may apply to the Ciri: titleContent.

The committee may grant loans under certain conditions, including the preparation of a recovery plan.

It can also offer a company audit or a referral to the Commission of Heads of Financial Services (CCSF) if the company has tax or social debts.

The head of the company in difficulty may send his request without any particular form to the General Secretariat of the Ciri.

Who can help me?

Find who can answer your questions in your region