Always on the move, the CIFCH (Independent Council for the Horse Racing Industry) chaired by Christiane Head is organizing a new conference on Monday afternoon which will take place at the Palais du Luxembourg. The theme, very technical, is aimed at socio-professionals since it concerns “family transmission of horse racing businesses”. At the center of attention will be the so-called Dutreil Pact (2003) which, according to tax lawyer Guillaume Rubechi, allows “sustain the exploitation by avoiding in particular applying excessively heavy taxation on donations and inheritances, in particular concerning the horse racing sector which is very capital intensive.” Around fifty people registered to participate in this moment of discussion.
To the question “What is the main message you want to bring to this conference”three experts responded:
Flavie Leservoisier, land expert: “The value of a company is measured by its means of production and its capacity to generate income. In terms of asset values, there are significant disparities within the sector depending on the activity carried out (trotting, galloping, breeding, training, etc.) and the dependence on land of each of them. However, the managers of horse racing companies have common issues; generate income, make a decent living from their profession, sustain it and then pass it on. A milestone more easily reached with the Dutreil pact system.”
-Kevin Houdemond, tax specialist: “The transfer of a business is an important stage in the life of a chef business which must be anticipated and prepared. Intra-family transmission is a possible option which is frequently chosen in the equine industry. Often little known by stakeholders in the sector, the Dutreil Pact is an essential tool for the transmission intra-family of an equine operation in order to mitigate the tax cost of the donation or of succession.”
Guillaume Rubechi, lawyer: “From my experience as a tax lawyer, the Dutreil pact is an essential tool in intra-family business transfer operations, and the horse racing sector is no exception. It makes it possible to perpetuate the operation by avoiding in particular the application of excessively heavy taxation on donations and inheritances, particularly in a sector which is very capital intensive. This subject must also be integrated into a global reflection on the valorization and transfer of horse racing businesses. Unfortunately, experience also shows that this is a very little and poorly known to industry players.
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